Hardware Retailing January 2019 by NHPA

Serving Hardware, Home Center & Building Material Retailers

DISTRIBUTOR PROFILE SERIES

Choosing Change

True Value Executives Share What Retailers Can Expect in the Future 35

Time is Ticking: How to Fit Everything in Your Day 48

VOLUME 216 • ISSUE 1 • JANUARY 2019 • HARDWARERETAILING.COM

Get Crafty in the Kitchen With Housewares Tools 56

WEBSITE

JOIN MAILING LIST

FACEB

Always By Our Side Orgill Offers the Resources We Need to Improve Our Business

“Orgill is extremely professional, and we know they’re here for us. They stand behind us 100 percent.” Jackie and Michael Sacks l Round Top Mercantile Company, Texas l An Orgill customer since 1988

Why We Like Working With Orgill: • Pricing that helps us • Resources to help us build stay competitive our brand within our market • Assistance with store • The ability to expand our product offerings merchandising and layout

DISTRIBUTOR PROFILE SERIES

Choosing Change

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com

True Value Executives Share What Retailers Can Expect in the Future

? Who’s in Your Hall of Fame? For two decades, the Young Retailer of the Year program has honored outstanding leaders advancing the independent home improvement industry. Submit a nomination for your operation’s star and see them take their place among industry leaders.

Young Retailer Year of the

LEARN MORE OR SUBMIT A NOMINATION TODAY AT NRHA.ORG/YROTY

CATEGORY

Cooking With Chef Chad Hardware Retailing editor Chad Husted has whipped up a special video profiling the latest kitchen appliances. Learn how to use these in-demand kitchen gadgets and get delicious recipes to pass on to customers to clench sales. Watch the video now at TheRedT.com/chef-chad and discover kitchen gadgets that can make your sales sizzle.

DISTRIBUTOR PROFILE

Insights From the President and CEO There’s much more to our first distributor profile of 2019. Go online to read the extended version of our exclusive interview with True Value’s president and CEO, John Hartmann. In this Q&A, Hartmann talks about challenges the industry is facing and how the company has become a better partner for its customers. Dive in now at TheRedT.com/tv-hartmann.

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is made for all employees. Visit nrha.org/training to download this month’s lessons, listed below.

The Faces of True Value To give readers a better look at True Value, we spoke to retailers in the industry that fly the company’s flag. Read these profiles to learn how True Value supports and works with these independent businesses.

Seconds Count Inspire your employees to start thinking about how they manage their time with this month’s Trainer’s Toolbox. It’s designed as a discussion guide to help employees reflect on their day and what they could change to be more productive.

New Beginnings: A new chapter is opening for Caldwell True Value in Idaho. Read the full profile now at TheRedT.com/caldwell-tv.

HARDWARE RETAILING | January 2019

Remodel Ready: MSK True Value owner Jeff Johnson is always looking for ways to grow his business. Read his story at TheRedT.com/msk-tv.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

™

SCREEN WITH Water Shed Technology ™

Now Featuring Phifer’s

WATER SHED TECHNOLOGY ™

Durable, hydrophobic coating will not wash off. Sheds water and debris build-up. Preserves viewing clarity for more brilliant outward views.

Wat

gyª

Remains cleaner longer and increases life expectancy of the screening.

SCREEN WITHOUT Water Shed Technology

Water Shed Technology gives BetterVue and UltraVue a clear view for the life of the product by repelling water and resisting dirt and grime, making them much less likely to accumulate on the screen.

e d Te c h n

Rain or shine, enjoy clear views and cleaner screens.

Independent Thinking

Positioning for Growth

“Whether you plan

on adding new locations or niches, or implementing new operational strategies, you should also be focusing on how you can invest in and improve your most valuable asset—your people.

”

t’s a bit hard to believe, but the calendar says that it is indeed a new year, so I’d like to officially wish each and every one of you a prosperous 2019. As we are starting this new year, I’d like to ask you a simple question—do you plan to grow your business over the next 12 months? Well, if you’re like most independent retailers, the answer is probably yes. In fact, according to research we recently presented during our fourth annual State of Independents Conference, about 70 percent of all independent retailers say they’re planning for their sales to grow this year. If you do plan on seeing your sales increase in the next 12 months, the next logical question might be, “What are you going to do within your business to realize those increases?” Some retailers might be content to sit back and say, “Well, the market is growing, so I guess my growth will come as a result of those market forces.” While this might get you a certain degree of growth, if you don’t actually institute a plan for how you are going to drive growth, you might really be missing the opportunities an expanding market can represent. One thing is certain: Any business owner or manager should plan for growth, whether the market is in your favor or presenting headwinds. But any real growth plan should involve the steps you are going to actively take within your business to drive that growth. There are many different areas you can look to as a means of jump-starting your growth in 2019. You might add products, categories or niches to your operation. You can focus on increasing your transaction size or ramping up marketing efforts. Or you may even look at expanding your existing location or look to adding new ones. Regardless of what your plan is, I would like to propose that you also factor in a strategy that can be effective for any business—invest in growing your human capital. That’s right. Whether you plan on adding new locations or niches, or implementing new operational strategies, you should also be focusing on how you can invest in and improve your most valuable asset—your people. How do you go about doing this, you might ask? Your association can certainly help. The North American Retail Hardware Association (NRHA) offers a comprehensive suite of employee training and development programs designed to elevate the quality of your team. From our Basic Training Courses in Hardware Retailing and Building Materials to our Foundations of Leadership course and Retail Management Certification Program, we have modules built to help everyone, from the newest hire to a seasoned pro. We are also unveiling something new in 2019 that is specifically designed to help business owners improve their entire operation from the top down. We are proud to be partnering with noted business consultant Linda Small of Retail People Solutions to offer an entirely new NRHA consulting service focused on retail leadership and organizational development. Stay tuned for more information on this new program in the upcoming issues of Hardware Retailing, but in the meantime, I would encourage you to check out the full complement of NRHA training resources that can help you prepare your team to support your growth in 2019 and beyond.

Bob Cutter, President and CEO

bcutter@nrha.org

HARDWARE RETAILING | January 2019

BUILD YOUR BUSINESS WITH STIHL BJOERN FISCHER – PRESIDENT, STIHL INC.

Dear Dealers, Happy New Year! Over the past two years, STIHL Inc. launched a record number of new products providing our dealers even more ways to attract professional and homeowner customers. We have even more innovations planned for 2019, including a wide range of new products in the ever-expanding battery range and groundbreaking enhancements to our gas range. All of this means a real positive impact to your business. Our dedication to innovation is not just limited to our product technology. We also embrace new ways of thinking when it comes to our retail and marketing strategies. The buying habits of the outdoor power equipment customer are evolving and as a leader in the industry, we must respond. STIHL is ready to help build your businesses with the products, training, sales tools and materials you need to engage with your customers in new and more effective ways, delivering compelling messages where and when desired via omnichannel marketing. In 2019, we will continue to build our support of existing dealers, while also growing our dealer network, because we know that the quality customer experience found at local dealerships can’t be found at big box stores or traditional e-commerce techniques. I wish all of you a profitable New Year, as together we win our future. Sincerely,

Taking Care of Business

Checking In on the State of Independents

“In this new year,

perhaps we can focus on differentiating our businesses, growing our people, developing our operations and supporting those around us.

”

ast month, NRHA hosted its fourth annual State of Independents Conference in Chicago. I’m happy to report that this conference not only drew the largest number of attendees we’ve ever had at the event, but we also brought in the largest retailer audience to date. NRHA launched the State of Independents Conference to provide a singular voice for independent home improvement retailers. We conduct a lot of research in advance of the event—what opportunities you see for growth and what some of the challenges are that may provide obstacles to that growth. We also ask retailers from all over North America to serve as guest speakers and panelists at the event to share their insights directly with attendees. Since we started hosting these conferences, the frank discussions prompted by our retail speakers and panelists have truly stood out as highlights of the events. For those of you who couldn’t make it to last month’s conference, I wanted to point out a few things that I certainly took away from our retail speakers. Joseph Franquinha from Crest Hardware in New York shared his insights about how important it is for independent retailers to embrace their uniqueness. Franquinha’s one-store operation in the heart of Brooklyn is a perfect representation of the eclectic community surrounding it: from its bright-red exterior to a lush garden center and locally generated artwork dotting the walls. Zach Coblentz from Hartville Hardware in Ohio talked about how even a large operation can find ways to grow. He focused much of his conversation not just on the operation’s plans for physical growth, but also how much emphasis the management places on growing the people who work at Hartville. “If you focus on helping your employees grow, your business will follow suit,” he advised. Elliot Greenberg, owner of the 38-unit, Chicago-based JC Licht stores, gave an impassioned speech to attendees about how important it is to have an aggressive growth plan for your business. Greenberg said growing a business helps create opportunities for employees, create economies of scale with vendors and keeps a business focused. Perhaps most importantly, he told the crowd that they should never be discouraged by business setbacks because “there is always another move you can make.” In addition to these great keynote speakers and the insights from our retail panelists, perhaps one of the messages that resonated the most during the 2018 State of Independents Conference came from Samantha Post of T&M Hardware in Pennsylvania. Post was the first-ever recipient of the NRHA/Independent We Stand Spirit of Independents Award, which recognizes retailers who go above and beyond to support the shop local movement. In her humble acceptance of this award, Post pointed out how honored she was to be a small business owner and how she saw it as a duty to not only support her community, but to do her best to champion other local business owners in her area. In this new year, perhaps we can focus on differentiating our businesses, growing our people, developing our operations and supporting those around us.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | January 2019

FIRST CHOICE. BEST CHOICE. SUCCESS LOOKS GOOD ON YOU.

If you want to be the best, then you have to look your best. The Do it Best Signature™ Store Design program offers a flexible, scalable and affordable way for you to energize your store’s performance with interior and exterior retail design strategies, uniquely tailored to fit your market and store size. Signature Store Design features branding strategies and designs that enhance the overall customer experience. Stores that complete our Signature Store Design enjoy average sales increases of 17% in just the first year – and we think that’s beautiful! Let our design team show you how to enhance your visibility and customer experience with Signature Store Design. After all, when you look good, we all look good.

“The Do it Best Signature Store Design program is the perfect blend of powerful branding and market strategies custom tailored to your business. Our experienced design team is ready to work for you — let’s get started.” — Brian Kimball, Store Development Manager

independentsdoitbest.com

NRHA News

Make Training a Key Part of Your 2019 Plans

hat are your business goals for 2019? Are you planning to grow sales by adding a new niche to your operation? Do you want to appeal to a new customer base, or improve your average transaction size? Whatever plans you have for the new year, employee education is critical. Employees who are well-trained on the products they sell deliver better customer service and are more confident about suggesting add-on sales. They also feel engaged with your business, making it more likely they’ll choose to grow with your company, which will reduce your turnover. As you develop your training plans, consider the breadth of resources the North American Retail Hardware Association (NRHA) has to offer. NRHA has training for every level of employee on multiple subjects, ranging from in-depth courses on specific topics to quick training tools.

5-Minute Training One way to start training this year is to add quick lessons to the agenda at your next staff meeting. In about five minutes, you could give your employees a quick reminder about a timely topic that could improve their selling skills. For example, you can discuss the importance of making a good first impression on customers and how it could boost your customer service. NRHA’s Trainer’s Toolbox courses offer small doses of training, and they come with instructor’s notes and a presentation, so they don’t require much preparation before a staff meeting. There are more than 50 Trainer’s Toolbox lessons, covering product knowledge, operations, selling skills and merchandising. This training is free for any independent home improvement retailer to download. NRHA will be adding new lessons throughout the year, so check nrha.org/trainers-toolbox to see what’s new. Also, follow the NRHA Facebook page, where you will find training reminders throughout the year.

A Comprehensive Strategy You also want to consider a plan that meets your goals for the year. For example, if one of your goals is to raise your store’s average transaction size, you might want to focus on teaching employees about the importance of add-on and project sales. One of the best ways to get a training plan started is by downloading one of NRHA’s free training resources: Train the Trainer (nrha.org/train-the-trainer). This guide will give you or your training manager everything needed to know how to start an effective training program, including tips for determining what form of training works best for you and how to evaluate your program once you’ve started it. Next, make sure you have access to NRHA’s courses through its online learning management system. The system is where you’ll go to find all of the courses and monitor the progress of each employee. NRHA’s nine courses cover product knowledge, operations, selling skills and more. They’re available to NRHA training members. To learn more, contact nrha@nrha.org.

HARDWARE RETAILING | January 2019

NRHA’s Training Membership NRHA offers nine online training courses, available on demand for any level of employee. Each can help retailers motivate employees to strengthen their overall operation. The courses come with study guides you can print out to use as a quick reference and include the following: • Basic Training in Hardware Retailing • Basic Training in Building Materials Retailing • Basic Training in Selling Skills • Basic Training in Merchandising • Project PRO • Loss Prevention • Our Three Pennies of Profit • Basic Retail Accounting • Basic Inventory Management Here is a quick overview of how the training process works: • Sign up for a training membership at nrha.org/membership. • Receive a welcome email with the next steps to register your store in NRHA’s learning management system. • Each employee uses their own username and password to log on and take courses. • You set the curriculum and get a report when each employee finishes a course. • You can even reward employees who complete milestones in their training.

Conference Highlights Opportunities for Growth

t the NRHA State of Independents Conference, held Dec. 6 in Chicago, retailers, manufacturers and industry analysts united to explore new opportunities to expand the independent home improvement channel. Growth was the theme of the annual event, which gave a chance for retailers from all wholesaler affiliations to share successes and challenges. Retailers spoke on discussion panels and gave keynote presentations on their strategies for growing product departments and adding locations. Industry experts also offered insight into industry and economic trends. Jim Robisch from research firm The Farnsworth Group and Dan Tratensek, executive vice president of NRHA and publisher of Hardware Retailing magazine, spoke on the health of the industry in the context of the overall retail and economic environments. Tratensek also presented NRHA research on retailers’ challenges and opportunities for growth and the product categories they identify as thriving and expanding. Retailer panelists shared their perspectives on the state of the industry. Joe Franquinha, owner of Crest Hardware in Brooklyn, New York; Zach Coblentz, division manager for Hartville Hardware in Hartville, Ohio; and Elliot Greenberg, owner of JC Licht in Chicago, each gave presentations on how they have grown their distinctly different businesses.

At the NRHA State of Independents Conference, Joe Franquinha discussed his operation’s growth strategies for 2019 and beyond.

Roundtable Unites Female Industry Leaders

The Women’s Leadership Roundtable gave attendees the chance to candidly discuss channel challenges and opportunities.

t the third annual Women’s Leadership Roundtable, women in the independent home improvement industry gathered to discuss strengths and opportunities before the start of the NRHA State of Independents Conference in Chicago. The roundtable brought together female leaders from within the independent home improvement sector to share ideas and best practices and to benefit from one another’s perspectives on growth and industrywide opportunities. At the event, a group of diverse women representing retail businesses from the U.S., Canada and the Caribbean gathered with women leaders from key wholesalers and manufacturers working within the industry. The roundtable provided an opportunity for dialogue between people from businesses of different sizes and specialties and with varying wholesaler affiliations, which facilitated a candid discussion of the industry. During the roundtable discussion, participants shared perspectives on topics such as recruiting new talent; training and retaining key employees; financial transparency with employees; dealing with family relationships in business; encouraging other women to take on leadership roles within their companies; and strategies for successful online marketing. Event attendees also discussed specific challenges they are facing while operating their businesses, suggested best practices and asked each other for business advice.

January 2019 | HARDWARE RETAILING

NRHA News

For many retailers, investing in the program has been a powerful way to instill new retail skills and business acumen into their operations.

Start Your Year With a Solid ROI

ive your managers and senior-level employees the skills they need to succeed. Employee training is one way business owners can strengthen their operations in 2019 and beyond. The deadline to apply for the Spring Session of NRHA’s Retail Management Certification Program is March 1. For many retailers, investing in the program has been a powerful way to instill new retail skills and business acumen into their operations. Developed for retailers by retailers, the Retail Management Certification Program teaches industry-relevant lessons on marketing, HR management, finance, accounting and more to give next-in-line managers modern retail skills. During three visits to NRHA’s Indianapolis headquarters, program participants benefit from interactive workshops, multiplatform learning and direct feedback from entrepreneurship educators to develop their retail leadership skills. The program culminates with a business improvement project developed specifically to strengthen the student’s company. Along the way, they receive candid feedback from peers, industry experts and business owners to ensure their program is on track to help their company excel in 2019 and beyond. Learn more about program lessons, career benefits and application information at nrharmcp.com.

HARDWARE RETAILING | January 2019

SHAKING EVERYTHING BUT YOUR CONFIDENCE.

AT RADIA, WE SET THE INDUSTRY STANDARD FOR PAINT MIXERS AND SHAKERS. OUR MACHINES ARE BUILT TO LAST.

RADIA

MIXING & SHAKING SINCE 1992

800.221.1083 | RADIAPRODUCTS.COM

“Not only are our customers more happy with our selection, but

the Midwest Fastener remodel is a major improvement to our store.” Darek Barnes, Owner - Garden of the Gods, Ace Hardware Colorado Springs, CO - pictured: Jennifer Ferrini, Store Manager

Exceeding Expectations. One Fastener Destination at a Time!

For your very own fastener destination, contact Glen @ 800-444-7313 x 120

800.444.7313

fastenerconnection.com

Trends Investing in the Master Bath U.S. homeowners who remodel their master bathrooms are willing to invest in creating functional, attractive spaces. In fact, they typically spend about $7,000 on their master bath projects, according to a bathroom trends study from Houzz, a home improvement website. That makes master bath remodels second in price only to major kitchen upgrades, which are typically $11,000 investments, the study shows. Homeowners’ project goals include creating beautiful rooms that add value and function to a home and reflect their personal tastes. In addition, 46 percent of homeowners who remodel a master bathroom also renovate a master bedroom at the same time, according to Houzz.

Applied to Retail Nearly 80 percent of homeowners who are upgrading their master bathrooms consider style and beauty to be top priorities in the remodel, data from Houzz reveals. Keep that statistic in mind as you talk with customers about their own plans for master bathroom upgrades. Ask what look and feel they want for their bathrooms and whether they would like the colors and design to complement the master bedroom, or if the bathroom should include a totally distinct design. In addition, homeowners who are shopping for a new toilet and fresh paint may expand on their project, increasing their transaction size, if they think more broadly about what style they want for their bedrooms.

Scrubbing Up the Bathroom When renovating master bathrooms...

81%

44%

maintain master bath and bedroom styles that match.

of those remodeling change the bathroom’s layout.

change the bathroom’s location in the house.

Top Functional Priorities When Remodeling

Good Lighting ........................... 47%

Easy to Clean and Disinfect ..... 44%

Fits More Than One Person........ 42%

Source: 2018 U.S. Houzz Bathroom Trends Study

HARDWARE RETAILING | January 2019

New Products

“Since Entry doesn’t track

on floors, it’s been a great solution for customers like apartment complexes and retail stores. They’re excited to know they won’t have to clean up salt particles.

”

—Matthew Meyer, Meyer Ace Hardware

1 “My customers like the

SDWC Truss Screw because it's easy to install and saves time on the job. We like it because it simplifies inventory, and we like the reliability it offers.

”

— Derek Fowler, North Florida Fastening

1. Deicer

2. Truss Screw

Entry™ is a salt-free, biodegradable deicing product that removes thin layers of ice and prevents new snow and ice from accumulating. The non-chloride-based liquid in Entry eliminates residue and granular tracking that damages carpeting and floors and is safer for pets, plants, metals and concrete.

Strong-Drive® SDWC Truss Screw can be used for rafter and truss connections, with stud-to-bottom or stud-to-top plate connections available. The screws are compatible with the Quick Stik™ installation tool as well as normal drivers. The full-threaded shank engages the entire length of the fastener. Packaging options include retail packs for small quantities as well as larger heavy-duty buckets.

Branch Creek Organics 267-203-1609 or chloridefree.com

HARDWARE RETAILING | January 2019

Simpson Strong-Tie 800-999-5099 or strongtie.com

RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Chad Husted at chusted@nrha.org.

“My customers love

Neptune’s Harvest fertilizers. They do a great job without including chemicals that can have side effects.

”

— Jay R. Smith, Smith Ace Hardware

3 “Synthetic scents like

Buck Fever have longer shelf lives than natural products. It has a good price point and works well for us in impulse sales.

”

—Al Behselich, Pittsville Farm and Home Center

3. Fertilizer

4. Deer Scent

The Tomato & Veg and Rose & Flowering fertilizers are liquid fertilizers made from organic ingredients including fresh fish, seaweed, molasses, yucca and humates. They are specifically designed for plants with intense vegging and flowering stages. They can be combined or used individually, with each type of fertilizer being used at a different stage of the harvest. Each gallon of the concentrate makes 128 gallons of fertilizer.

Buck Fever Forehead Gland scent is used to simulate fresh forehead gland activity. Regular use will increase over-marking activity from deer. It can be used on overhead branches and rubs as well as on trails and vegetation adjacent to stand sites. As a synthetic scent, it will work as a non-spoiling attractant that has staying power throughout the season.

Neptune’s Harvest 800-259-4769 or neptunesharvest.com

Buck Fever Synthetics 888-282-5827 or buckfeverusa.com

January 2019 | HARDWARE RETAILING

New Products

American Made & Profitable For Over 80 Years

5. Car Awning Rhino-Rack’s Batwing Awning protects an area 270 degrees around a vehicle. Included are brackets that have a high and low fitting position, so no U-bolts are needed. The Batwing has fully integrated legs that unclip from the storage position that drop into place. Magnets click in to place to hold the arms, and Velcro straps secure the awning when packed. Rhino-Rack 303-706-9700 or rhinorack.com

6. Specialty Door Hinge With a variety of clearly marked spring assortments, Ajax offers your customers ease of selection for their specific needs. Each assortment comes in their own unique case. Our storage cabinets and kits, provide assortments of Steel Lock, Brass Lock, Music Wire, Stainless Steel, Extension, Compression and more, each making dispensing efficient and economical. Ask for our Product Catalog which provides product descriptions and size specifications.

Toll Free: 855-966-AJAX (2529) www.ajaxwire.com ajaxwire@aol.com 119 Bloomingdale Road, Hicksville, NY 11801

HARDWARE RETAILING | January 2019

The Swing Clear Offset Door Hinge adds extra width to existing doorways to provide easy access through doors for anyone using a wheelchair or walker. The door swings completely outside of the jamb, adding width and providing barrier-free access. The hinges work on left-hand or right-hand doors—all that's required is flipping the hinge pin. Stone Harbor Hardware 877-556-8483 or stoneharborhardware.com

The International Home + Housewares Show features hundreds of exhibitors offering the latest cleaning & organizational solutions, closet & clothes care, bath accessories and unique pet-care items.

March 2 - 5 • Chicago Free Badge Registration at

www.housewares.org

New Products

of Grease Guns A Grease Gun Designed to Suit Every Application!

7. Faucet Collection Bélanger by Keeney faucets offer affordable luxury options for kitchen, bathroom and laundry room faucets. Faucets are manufactured with grade A brass construction with chrome or PVD-resistant finishes to protect from corrosion and tarnishing. The Bélanger line includes features like rainfall and waterfall showerheads, motion-activated kitchen faucets and water-saving bathroom faucets in a variety of styles. Keeney Manufacturing 800-243-0526 or keeneymfg.com

8. Indoor Growing System The Nutritower lets users harvest fresh fruits, vegetables and herbs indoors without the use of soil. The growing system comes with fluorescent lights, 32 growing pots, screens, grow baskets and clips. It includes the watering tubes, digital cycle timer for the pump, growing medium, nutrients, seeds, seedling starter kit and assembly tools.

Lumax.com 26

844.660.6876

HARDWARE RETAILING | January 2019

Nutritower 800-721-8419 or nutritower.com

9. Toilet Repair Kit The PRO45K is a complete kit for a total overhaul of toilet tank components. The kit includes a PRO45 fill valve, 2-inch flush valve, flexible flapper, solid brass bolts, stainless steel washers, gasket and a PRO61 tank lever. The kit contains all necessary components for a quick installation and eliminates the hassle of needing to purchase additional parts. Fluidmaster 800-631-2011 or fluidmaster.com

10. Road Play Tape PlayTape® creates roads and rails for toy vehicles to play on. PlayTape sticks to any flat surface and is easy to tear by hand and reposition, peels up without any residue and is recyclable. It is compatible with, and made-to-scale for, the most popular toy cars and trains on the market. InRoad Toys 888-311-7165 or inroadtoys.com

January 2019 | HARDWARE RETAILING

New Products

11. Stone Veneer Pro-Fit Terrain Ledgestone provides trade professionals with contemporary design options that meet GREENGUARD Gold Certification standards, allowing the veneers to be used in environments like schools and health care facilities. The precision-fit and easy-to-install stone veneer is available in four color options: Arcadia, Arctic, Ethos and Trek. Cultured Stone 800-255-1727 or culturedstone.com

One Can To Do It All.

Rust Patrol® is a revolutionary rust preventative, lubricant, penetrant, and moisture displacer. It does all of these things and does them extremely well! Active at the molecular level, Rust Patrol® saves your customers time and money by working more quickly, lasting longer, and with less product. Rust Patrol® truly is “One Can To Do It All”. Aidant Brands®

For information, visit

RustPatrol.com Follow RustPatrol on:

HARDWARE RETAILING | January 2019

Prevent Rust • Lubricate • Penetrate

12. Portable Air Conditioner/Heater The Friedrich ZoneAire® Compact portable unit is a single-hose design that serves as an air conditioner, a dehumidifier and a heater. It features a large LED display, a rotary dial four-speed fan and temperature adjustment controls, along with an easy-to-install and secure hose attachment. It also offers “Bonus Heat” performance capabilities with 12,300 BTUs in a 115-volt portable unit. Friedrich Air Conditioning 800-541-6645 or friedrich.com

13. Decorative Planter

14. Crack & Crevice Weeding Tool

The Hemingway Planter is made from recycled steel and designed by Australian artist Aaron Jackson. It has a drainage plug on the bottom along with a unique vintage finish in shades of blue and copper. It can be used indoors or out, and each piece contains the artist’s signature.

The Weed Snatcher is a chemical-free, adjustable tool for removing weeds from driveways, sidewalks, patios and decks. The tool can be used similarly to a mop, with the user setting it over a crack and scraping.

Think Outside 469-610-7646 or thinkoutside.biz

Ruppert Garden Tools 859-817-1235 or ruppertgardentools.com

CABLE PULLERS AND FENCING INSTALLATION PRODUCTS quality built for durability & performance you can count on

Dual Drive Gears Galvanized 3/16” Aircraft Cable

Drop Forged Steel Slip Hooks with Safety Latches

High Strength Electro-Plated Steel

ONE TON

TWO TON

FOUR TON

ONE TON

TWO TON

STANDARD

PROFFESIONAL SERIES

3/4 -Ton Rope Puller

1-Ton Strap Puller

Fence Pliers

1/2-Ton Wire Grip

Contact Ancra Consumer / Industrial Sales Group at 800-626-8353

Woven Wire Stretcher

cicustomerservice@ancra.com

Fencing Wire

Stretcher

consumer.ancracargo.com

January 2019 | HARDWARE RETAILING

New Products

high variety. high style. high satisfaction. Schlage Custom™ Door Hardware is uniquely designed with variety and style in mind. Now, it’s easy to change your door hardware as the decor in your home evolves. HSI stocks the Schlage Custom Series that your customers are looking for. With same day shipping from our ten warehouses, and no minimum order requirements, you can satisfy your customer without the typical hang-ups. Give us a call today and see how special order is supposed to work.

15. Aluminum Mailboxes The Admiral Aluminum is constructed from durable aluminum that will never rust and features a richly textured powder-coated finish for added corrosion resistance. It is ideal for coastal areas and regions where roads are frequently salted. The mailbox is designed with all rustproof hardware and components to outperform harsh weather conditions and provide a long service life. Gibraltar Mailboxes 800-647-7063 or gibraltarmailboxes.com

16. Smart Door Lock

The Residential Hardware Experts

800-334-5625 | www.sld-hsi.com 30

HARDWARE RETAILING | January 2019

The Danalock V3 is a wireless smart lock that controls access to a home with a smartphone. The user can create an unlimited number of digital keys for family members, friends, guests or helpers such as a housekeeper or contractor. Keys can be programmed for permanent or temporary access, and alerts can be set up to notify a homeowner when a key is used. Danalock International danalock.com or support@danalock.com

RETAIL READY SCAFFOLDING FOR YOUR STORE

• • •

Complete mason frame scaffold system Best sellers, low SKU count all fit in 8’ bay Special order programs available

17. Decorative Hardware Collections Deco & Deco features four collections of high-end drapery hardware and accessories. The collections, named Murano, Crystal, Acrylic and Metals, include materials such as Italian Murano glass and imported crystal designs. Each collection includes a range of products and accessories in a variety of sizes and up to 13 finishes.

• • •

Widest product offering Best in class packaging Best in class signage

Deco & Deco 855-876-0846 or decondeco.com

18. Drill Bit Sharpener The Drill Doctor 750X sharpens standard twist and masonry bits from 3/32-inch to ¾-inch. The custom point angles can be set anywhere from 115 to 140 degrees. The adjustable material take-off further extends the life of the bit by allowing users to modify the amount of material removed during sharpening. The 750X is fit for sharpening carbide, cobalt, high-speed steel, black oxide, and masonry bits. Drill Doctor 800-597-6170 or drilldoctor.com

BECOME A METALTECH DEALER: WWW.METALTECH.CO

DISTRIBUTION CENTERS CA - FL - IL - OH - PA - TX - LA January 2019 | HARDWARE RETAILING

Checkouts EVENTS

A Burger Battle Buzz

harred beef. A cold beer. Sunshine on your back. What could be better than that? Adding a little competition to heat everything up. The competitive fire is alive and well in Walker, Minnesota, where the Burger Battle is hosted by Walker Home Center. The cooking competition gathers local chefs from area restaurants to grill up their best burger for hungry attendees. A ticket buys each battle-goer a sample from each restaurant, with an added fee for beer and wine samples. All proceeds go to an area community center, which hosts everything from a local karate studio to the high school hockey team’s facilities. Jeff Holly, owner of Walker Home Center, devised the event after being tipped off to a similar competition in another town in Minnesota. Holly was looking for a new summer event to draw interest to his store’s grilling section, and he was able to encourage local restaurants to participate. “I started it off as an idea to have some fun and sell a few grills. It’s grown way beyond that goal at this point as we head into the sixth year of the event,” Holly says. The competition now allows sandwiches into the field along with burgers, and as the crowd has grown, the location had to be changed. The event has been conducted in several locations, outgrowing Walker Home Center’s parking lot after the first few years and finding its current site at Moondance Fairgrounds, a local concert venue owned by Holly’s sister-in-law. The store originally provided each competitor with their choice of an outdoor griddle or grill and then sold the used cooking appliance as a demonstration model, but eventually Holly purchased some equipment for dedicated use in the Burger Battle each year. Each cooking team gets a tent and a small staging area, but they bring their own ingredients for their creations. “We’re really excited about the new venue, because it allows us to tap into a great crowd that will be around the music events and in a party mood. They’re set up to have concerts no matter what the weather is, so it helps ensure we’ll have a strong crowd,” Holly says. Competitors are judged by a judge’s panel as well as through a popular vote. Each ticket has two slips for voters to use on any competitor, and attendees can buy as many tickets (and votes) as they want. In future Burger Battles, Holly is hoping to include an area where Walker Home Center employees can show off their own cooking skills using a wide variety of grills available at the store. “I want to show we can hang with these pros too,” Holly says.

Walker Home Center conducts the Burger Battle each summer, gathering local burger fans for a competitive cooking event.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Melanie Moul at mmoul@nrha.org to have your story considered for publication.

HARDWARE RETAILING | January 2019

Beautiful products to inspire your customers.

Hangers

Gable Plates

Ties

Fasteners

Post Bases

Angles

Straps

Simpson Strong-Tie offers an eye-catching display in three sizes (2', 3' and 4') to increase visibility and sales of the new Outdoor Accents decorative hardware line. Featuring black powder-coated connectors and screws, Outdoor Accents provides both design elegance and structural strength, giving your customers the inspiration to build custom outdoor living structures. Visit go.strongtie.com/outdooraccents or call us at (800) 999-5099.

4' Display

Checkouts

PROMOTIONS

A Snowy New Year

here’s a time in everyone’s life they’ve hoped for a big snowstorm. As a child, it gets you out of school. Another reason is if you bought a snowblower that season at Beisswenger’s Hardware and Power Equipment in New Brighton, Minnesota. Because if a winter storm hits on New Year’s Day, you may get your money back. The promotion, which starts during the summer and ends in early December, states that anyone who bought a snowblower at Beisswenger’s that winter season will receive a full refund (minus taxes) if snowfall on New Year’s Day reaches 6 inches, according to measurements at the local airport. The promotion receives a lot of attention as the end of the year approaches, says sales manager Ray Pomerleau. The promotion backs up the commitment Beisswenger’s has made to outdoor power equipment like snowblowers. The business, which is nearing its 100th anniversary, services a full range of outdoor power equipment. “We’ve come close one year, with around 4 inches falling once it was all counted. We actually really hope it happens; it’d be a great day for our customers. For them, it would be like winning the lottery. When you wake up on New Year’s Day, it just might be your lucky day,” Pomerleau says.

Snowblowers at Beisswenger’s Hardware and Power Equipment come with a special promotion tied to snowfall on New Year’s Day.

MERCHANDISING

The House That Rags Built

The winning rag-box display was a dog house with Rags the dog sitting outside to greet customers.

HARDWARE RETAILING | January 2019

hen Whitmore Ace Hardware got a surplus buy on boxes of disposable rags, director of marketing Laurie Becker saw an opportunity to get creative. Instead of just stacking the boxes on a regular pallet display, she challenged managers at each of the company’s 6 locations in northern Illinois to a contest: Use the boxes of rags to build something unique that could be displayed in each store’s main aisle. “The power aisle can be a challenge for retailers,” she says. “It’s easy to let that area become a junk collector, so we try to put something unique there to catch the shoppers’ interest.” While creating the displays may have helped staff have a little fun, they also drew attention to the store’s promotional prices on the rags. “We actually discovered that for that particular product, our promotional price was $2 cheaper than our local big-box store,” Becker says. “As an independent business, we often get hit with the perception that we’re high-priced. This helped show customers we actually have great prices.” Becker says the exercise was valuable in how it engaged the employees. “All of our employees got involved in creating the displays,” she says. “When the team is on board with something like this, they also have the buy in to selling it.”

HARDWARERETAILING.COM

SPECIAL PROFILE ON TRUE VALUE CO.

New Year, New Path for

True Value

Serving Hardware, Home Center & Building Material Retailers

2019

DISTRIBUTOR PROFILE SERIES

Ready for the Future True Value Continues to Embrace Strategic Plan

hroughout 2018, many changes took place in the retail industry. One of those changes for independent home improvement retailers was True Value Co.’s decision to alter its distribution model. This new path led to many questions among retailers, regardless of wholesale affiliation, as they wondered what might happen with the company. Last March, True Value announced plans to sell 70 percent ownership of the organization to private investment firm ACON Investments. The decision transitioned True Value away from its identity as a co-op. In April, more than 80 percent of True Value members approved the deal. Hardware Retailing spoke with four True Value executives to learn more about the transition, its future plans and the latest programs it has to offer. Finally, for insights from a retailer, we spoke to the father-son duo at Nelson True Value.

This special section on True Value Co. is published by Hardware Retailing magazine, which holds and reserves all copyright on the content contained herein. This special Hardware Retailing supplement is part of a yearlong series profiling the home improvement industry’s distributors.

HARDWARE RETAILING

Table of Contents 37 . . . . . . . . . . . . . . . . . . John Hartmann 38 . . . . . . . . . . . . . . . . . . . . . . Dave Elliott 39 . . . . . . . . . . . . . . . . . . Abhinav Shukla 40 . . . . . . . . . . . . . . . . . . . . . . . . . Tim Mills 41 . . . . . . . . . . . . . . . Nelson True Value Extra, Extra! Online Exclusives For the full Q&A with True Value president and CEO John Hartmann, visit TheRedT.com/tv-hartmann. To read additional retailer profiles, visit TheRedT.com/tv-profiles.

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

A Clear Message True Value CEO Discusses Strategic Plan, Future Hardware Retailing (HR): What are you most excited about as True Value continues the strategic plan laid out in 2014? John Hartmann (JH): If you rewind back to 2014 when we rolled out the strategic plan, we went out and spoke with True Value retailers. Our plan is grounded in identifying through their eyes the areas of business that are important to them and focusing our resources on providing solutions. In 2018, we had an unprecedented amount of contact with retailers. We covered nearly 30,000 miles visiting stores across the country, including hosting 15 town hall meetings in the U.S. over a four-week period in late March and early April. Our customers’ feedback continues to inform every action we take in the business. That’s the foundation of our strategy.

HR: How did the 2018 deal with ACON Investments affect this strategic plan? JH: The only thing ACON has changed about our strategy is how fast we can grow and invest. Here’s how things have already changed: We are moving forward with an investment of $100 million for supply chain advancements in the upcoming year. The investment will alleviate congestion in distribution centers and will ensure that True Value provides the highest fill rates. We know this very substantial investment, along with our commitment to continuing to lower our costs of doing business, can keep independent retailers profitable.

HR: What does 2019 look like for True Value? What about the next five years? JH: Our focus is on the continued execution of our plan. It’s important for retailers to understand that the change in business structure is not a change in strategy. The investment ACON made in True Value is based on the very substantial opportunities they saw to help the company grow. The expectation our current retailers, customers and future customers should have for True Value is that the company will continue to be a leader in the industry. Making smart and important investments has been the cornerstone of our strategic plan. Over the past four years, we’ve been investing in our infrastructure and technology, also in support of independent retailers through marketing programs and other a la carte retail services. Our members and customers should expect that funding and that focus on their growth and profitability to continue in the future.

HR: What would you say are some of the biggest successes at True Value? JH: True Value’s success in the last five years has been our unwavering shift toward the growth and profitability of the independent retailer. One example is the creation and implementation of our Customized True Blue (CTB) program, which allows retailers to bring in assortments tailored specifically to their local community in a clear, easily displayed format. Our focus is also seen in our a la carte approach that allows retailers to use what True Value offers in a way that is most appropriate for them. Of course, the business transition that released nearly $230 million of our members’ trapped equity was a big win. As a result of the transaction, members received 70 percent of the invested capital, 100 percent of their promissory notes and their 2017 patronage dividends. And their remaining 30 percent ownership can appreciate in value over time, unlike co-operative equity. Also, we’ve seen over $50 million reinvested back into retailers’ businesses, including new roofs, updated parking lots, new signage and store remodels. They are also paying down debt.

HR: What do you want retailers to think of when they think of True Value? JH: True Value is the most flexible partner in the industry. We have the culture and commitment from our deep and long heritage as a co-op, and we’ve simply shifted to a wholesaler partner that doesn’t require a fee or any equity invested to be a part of our family. True Value provides the best of both worlds—premier retail services without the required co-op buy-in. Our customers benefit from a stronger company and the growth of the True Value family. The ambiguity is behind us; True Value is clearly here to stay and lead continued improvement in our industry.

John Hartmann President and CEO Hartmann has 20 years of corporate experience, with 16 years spent in the hardware and home improvement sector. He joined True Value in 2013 after serving at New Zealand-based cooperative Mitre 10.

HARDWARE RETAILING

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

A Custom Approach True Value Rolls Out New Marketing Plan in 2019 Hardware Retailing (HR): Can you talk about some of the company’s upcoming marketing initiatives? Dave Elliott (DE): Independent hardware retailing is in a really great spot by being able to supply different needs under one roof. Generally consumers need advice, or they have new and ongoing projects. Therefore, independent hardware retailers are in a great position to be the go-to resource to continue to meet consumers’ shifting needs. For wholesalers and independent retailers, it’s a matter of staying relevant for everyone. We stopped charging a national advertising fee so retailers could use that money to advertise locally, in both print and digital formats. Digital advertising may be new to a lot of our customers, but once they can see it will be profitable, they’re willing to include this new marketing approach in their mix.

HR: Do retailers set individualized budgets through this customized marketing program? DE: Through the marketing process, True Value helps retailers determine the budget that works best for their needs and goals. As a wholesaler, the company also invests in marketing programs. A good example of that investment occurred last spring when the weather delivered snow on the ground through much of the country. To offset that slower sales period, we directly bought and paid for geo-targeted digital advertising with relevant messaging to support our retailers and drive store visits, even with a late spring. We also offer a la carte localized marketing programs. Digital marketing allows you to adjust and change content more quickly to adapt to the current environment. Print is still important, but it needs to be targeted to specific audiences because it is so expensive. Stores that combined digital and print marketing methods realized the highest incremental sales currently, but their print expense contributes to a lower return on ad spend, due to its higher cost.

HR: How can a retailer determine the marketing program that works best for them? DE: In 2019, each store will have its own individual marketing program, and they will be able to adjust it as the dollars go up and down, right on the screen. We’re putting that power in their hands, because True Value marketing is about customization so we are relevant locally. Being able to customize locally is a smart thing to do, and our store owners understand this.

HARDWARE RETAILING

“We are also launching artificial intelligence devices to push localization further ... Retailers will be able to stand in the aisle and scan a barcode to see all the information they need.

”

We are also launching artificial intelligence devices to push localization further. One example of this technology is a new app. Retailers will be able to stand in the aisle and scan a barcode to see all the information they need, like how many units they have on hand, as well as advertising information or a video that shows the product in use. This technology can even help them look up companion products or print a sign to show if an item is on sale. In the next year, artificial intelligence will do more for stores, which is where I believe the future of technology is heading. We’ll start to increase advertising spending and decrease advertising expenses. In addition to the app, we’re introducing a new marketing technology suite, which will allow retailers to produce their own advertising materials and customize their printed circulars. We’ve also begun targeting Over-the-Top (OTT) advertising on televisions, apps and programs. This is the delivery of video and TV content via the internet without requiring traditional cable services. It is a more targeted type of advertising that goes to streaming services in a certain radius. That means retailers will have ads streamed within three miles of a store. We plan on doing more of that moving forward.

Dave Elliott Senior Vice President, Marketing Elliott joined True Value in 2017 from Mitre 10, a New Zealand-based home improvement co-op. He has over 25 years of global marketing experience. In his career, he has developed growth strategies for independent retailers.

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

An Efficient Supplier Supply Chain to Improve With New Investments Hardware Retailing (HR): Can you give readers an update on True Value’s supply chain as we enter 2019? Abhinav Shukla (AS): We’re in year three of five of our Supply Chain Network Optimization program, which is a central piece of a wider strategic plan. At the end of it, we’ll have significantly reduced operation costs and improved productivity by 25 percent. In the next year, we’ll have almost completely transitioned to a hub-and-spoke model. We are focused heavily on this, especially following our announcement of $100 million in investments into the program. In early December, we launched the first iteration of our hub-and-spoke distribution model in the midwest to address capacity issues and enhance our customers’ product fulfillment and delivery experience. This strategy delivers many benefits, such as improved efficiency, streamlined deliveries and greater in-stock probability for low-volume SKUs. This system also allows us to provide increased distribution center capacity to support their future growth. Leading up to the switch to hub-and-spoke, we looked at our stocking strategy and optimized it across our central facility and regional centers. In the last three years, separate from this five-year plan, we’ve invested in voice-pick technology, which frees up operators’ eyes and hands, leading to greater efficiency without requiring more employees and improving operations.

HR: From a retailer’s perspective, what are the efficiencies that have been delivered so far? AS: We pride ourselves on having competitive prices. For example, in 2016, despite increasing cost headwinds that have worsened since, we lowered our base freight rates and kept them at reduced levels. Consolidated receipts have allowed efficiencies at stores, and we want to make it easier to adopt these programs. We have industry-leading fill rates. The more you trust your primary distributor, the easier it is to do business with us.

HR: What are you seeing in terms of inbound efficiency moving forward? AS: The broader supply industry is facing serious challenges from record low levels of unemployment, trade-related increases and commodity inflation, as well as persistent shortages in warehouse and driver labor pools.

Distributors have struggled with inbound service levels, and we have adopted a multitude of strategies to insulate our customer fill rates from these challenges. On the pricing side, with the tremendous volatility around trade agreements and an inflationary raw material environment, we are protecting our customers by negotiating timing and level of price changes from our vendors. We’re supporting our retailers by helping them with pricing strategies that preserve and grow margins in this volatile and rising price environment, and we guaranteed our Fall Reunion pricing, regardless of tariff activity, and plan to do the same for our Spring Reunion.

HR: What are some operational challenges moving forward? AS: Our central objective is to support retailer growth and profitability by recognizing the reality of the world we live in. Consumers are seeking flexibility and choice through an omnichannel offering. That requires constant focus on in-stock accuracy, quality and cost to serve, and a strong focus on order to delivery, or lead times. New digital programs, such as customized circulars and retailer-specific e-commerce programs, will help us be more responsive and cost-effective. One of our differentiators on the e-commerce side is that 80 percent of our retailers participate in the ship-to-store program. Ship-to-store drives consumers into the store, so regardless of where they begin or end their journey, there is an interaction with a brick-and-mortar True Value, which builds the value and success for the customer with our retailers. For special orders, if a consumer walks into a store and a particular item is not in stock, they can place a direct-to-consumer order. It’s providing retailers an extended capability supported by True Value.

Abhinav Shukla Senior Vice President and COO Shukla is responsible for all aspects of supply chain management, global sourcing and strategic procurement. He has led strategic initiatives at several Fortune 500 companies, improving financial and operational performance.

HARDWARE RETAILING

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

A Growing Opportunity How True Value Plans to Serve More Retailers Hardware Retailing (HR): How has True Value been looking at growth through the strategic plan? Tim Mills (TM): We’ve had almost 200 new stores join the

HR: What are some of the current challenges retailers are facing? TM: One of the biggest challenges for some retailers is the

organization since April, which has set a new record for True Value growth. Most of these are still in the core hardware space, but we’re also seeing farm, ranch and lumber retailers, such as Carter Lumber, that are joining, and realizing True Value can add value to their business model. Many of the new stores that have joined have come from major wholesalers. All have called out our value proposition and focus on independence. Many have joined because they see the value of not having to invest. True Value has experienced its best year of conversions, which tells me the market was ready to accept a new model. We see secondary supplier relationships as an additional growth opportunity. In those instances, our field team will work with the retailer to develop a category assortment plan such as paint, lawn and garden or farm, ranch, auto and pet, which are areas True Value leads in the industry.

fear of change. I see many retailers being comfortable with the routines and approach they’ve taken to run their businesses. Yet society has changed and, therefore, we have to as well. Success in retail is not only about knowing what the customers want and need, but staying one step ahead and adapting to the world around us. It used to be about big beating small, but now I think it’s about fast and nimble beating slow and inflexible.

HR: How is True Value helping retailers grow their operations? TM: We came out with the Roadmap to Retail Excellence

HR: How does True Value help with concepts like e-commerce and store promotions? TM: Our omnichannel strategy is of vital importance. One

several years ago, and that is still our primary focus. This tool helps diagnose and guide what actions retailers can take to achieve their goals. The concept here is really all about relevance—we recognize that to compete today, a store must be relevant. Whether it’s the physical plan of the store, new marketing techniques or product assortments, we have programs in place today that are focused on ensuring relevance at the retail level. If we do those things well, it always translates to higher sales.

of the biggest improvements for us is that we’re able to display local store inventory and soon, local pricing, on TrueValue.com so consumers can see price points and local inventory availability. Additionally, our field and marketing teams are available to help retailers best utilize True Value Rewards and digital marketing. These programs allow retailers to customize communications to their consumers. The most distinguishing factors of True Value are that we are flexible, respecting the independence of each of our retailers, yet we are always available to help them succeed. We have built strong relationships, and these relationships set us apart. We are looking to grow our team and amp up our engagement even further in the new year.

“We have built strong

relationships, and these relationships set us apart. We are looking to grow our team and amp up our engagement even further in the new year.

”

HARDWARE RETAILING

HR: What are the specific programs built around growth from True Value? TM: Aside from our leading growth programs, like Destination True Value, and our Customized True Blue assortment program, our retail pricing efforts are important relative to growth. First, they create an appropriate price perception in the store, and second, they maximize profitability.

Tim Mills Senior Vice President, Growth Mills joined True Value in 2013 from industrial distributor HD Supply. He has held executive roles in operations, sales, mergers and acquisitions and was most recently vice president for the company.

DISTRIBUTOR PROFILE SERIES

RETAILER PROFILE

Family Business Focused on the Future Nelson True Value Finds Success With Distributor

hen Fred Nelson was ready to retire from retail ownership of the store he had owned and operated since 1954, he didn’t want to see the business come to an end. In his search for a new owner, he wanted to find someone excited about the opportunity, and ideally, someone who had children who might show interest in one day running the business. So when Nelson approached Roy Kanis about taking on ownership of Nelson Agri-Center True Value in Viroqua, Wisconsin, in 1989, Nelson was confident the business would have a bright future. Roy’s son Dan Kanis graduated from college and began working as a sales representative for an agriculture company. In 1995, Nelson’s hope of a family leading his store forward became a reality when Dan entered the retail operation alongside his father and their manager and minority business partner, Mark Brueggen.

In 1998, Roy, Dan and Mark invested in a second hardware store about 50 miles away in Prairie du Chien, Wisconsin, which they renamed Nelson True Value. Many more changes and updates have influenced the operation since then, but now, Dan’s son Jacob is the next in line to lead the Nelson True Value operation.

Growing the Business While Dan was excited about Jacob or any of his children joining the family business, he knew he wanted them to attend college and get work experience outside of the store before making that commitment. Jacob pursued his education and began his career with Menards and United Rental before returning to the business. According to Jacob, these jobs gave him an inside look at what worked and didn’t work in retail and rental.

HARDWARE RETAILING

DISTRIBUTOR PROFILE SERIES

In 2014, a fire destroyed businesses near Nelson True Value, and the team faced a new future when they decided relocate. “Our original location in Prairie du Chien had been in the same building since 1970,” Dan says. “Our store just had smoke damage after the fire, but we decided it was time to move. We worked with True Value and began planning a ground-up store, which we built in 2015.” As they built the new store, Jacob was there to oversee construction. He also became the store’s manager. “True Value was extremely helpful as we built our store,” Jacob says. “We used the Destination True Value program, and they helped us select planograms and products.”

A Passion for People For Dan and Jacob, operating retail businesses in small communities is something they are passionate about. “My favorite aspect of my job is working with customers,” Jacob says. “I wake up and look forward to coming to work every day, because I am helping our loyal customers.”

“True Value has new and fresh

ideas, from pricing and products to logistics.

”

—Dan Kanis, Nelson True Value

Nelson True Value was one of the first stores to implement the True Value Inspiration Realized color center, a modular display.

HARDWARE RETAILING

Dan and Jacob understand the importance of investing in the communities they serve. Both stores face big-box competition from chains like Walmart and Tractor Supply Co., but the team believes employee knowledge and deep inventory help set them up for success.

A Future-Focused Distributor Nelson True Value has been part of True Value since the mid-1970s, and according to Dan, the wholesaler has always been a supportive partner to their family business. One area where Dan and Jacob have been able to improve and expand with help from their wholesaler is their rental department. “In my opinion, True Value was really a pioneer in the store-within-a-store concept in regard to rental,” Dan says. “With their help, we got that program off the ground in the 1990s and now, rental is one of our biggest departments at both of our stores.” Paint is another product area where True Value has helped the store stand out against competition. It was one of the first locations across the country to have the updated True Value Inspiration Realized color center, which is a modular program that can work in stores of all sizes. The business utilizes other True Value programs, including its marketing and advertising initiatives, as well as the True Value Rewards program. When True Value announced plans to sell 70 percent ownership of the organization to ACON Investments, Dan says he was skeptical due to his loyalty to the established co-op model. However, Jacob had a more objective perspective, and they decided to use the return on capital to strengthen the future of the business. “We took the money we got back from True Value and paid down debt,” Dan says. “My business partner and co-owner Mark is retiring, and I’m looking at retiring in the next six or seven years, so we’ve been able to use our money to focus on the transition to Jacob running the business. It really was a blessing.” As the father-son team continues to focus on the future, they know they can count on True Value to provide innovative products and programs to help the business succeed. “True Value has new and fresh ideas, from pricing and products to logistics,” Dan says. “We really appreciate their focus on changing and strengthening their advertising and marketing program, which has a strong focus on digital and social media. And the True Value Rewards program has also been a fantastic way for us to connect with customers and build stronger relationships. Getting people to walk in the door is crucial right now, and marketing and Rewards are two ways we can continue to do that.”

TRUSTED S I N C E 1 9 5 7.

EVERY TIME THEY FLUSH, YOUR REPUTATION IS ON THE LINE. Put your trust in the brand who’s been #1 in the toilet repair business for over 60 years. Our most powerful solution, the PerforMAX Fill Valve, is now even quieter, faster and

Fluidmaster.com

easier to install. We have your back.

DISTRIBUTOR PROFILE SERIES

NEW

NOW SHIPPING

No NMP, No Methylene Chloride

BLUE BEAR PAINT STRIPPER With Safenol™

• No NMP, No Methylene Chloride • Removes Multiple Layers of Coatings in ONE Application • Low Odor Formula • Non-Caustic & Biodegradable

Made in the USA

Phone: 800.538.5069 Find a dealer near you: www.franmar.com/find-distributor

NEW!

MULTI- MATERIAL CONSTRUCTION SCREWS

Multi-Material

The THE

Screw You’ll Ever Need!

ADVANTAGE COUNTER SINK BLADES

PRO-STICK ™ STAR DRIVE

SPIRAL FLUTES

HI-LO SERRATED THREADS

PYRAMID POINT

Clean Finish!

No Stripping!

Increases Strength!

Fast Driving!

No Pre-Drilling!*

*In wood, drywall, plastic & metal up to 20 gauge. Pre-drilling required for masonry projects.

Contact your Hillman sales or customer service representative for more information. www.hillmangroup.com • 1-800-800-4900

DISTRIBUTOR PROFILE SERIES

MIGHTY

POWERFUL | PORTABLE | EFFICIENT

THE BRAND YOUR CUSTOMERS WILL ASK FOR BY NAME

QUALITY Engineered for professional use and designed for optimal performance in industrial devices.

MADE IN THE USA1 American made, American power. Powering America since 1906.

SERVICE & SUPPORT Dedicated to meeting the needs of customers both large and small.

POWER VARIETY Diverse battery solutions keep devices and tools powered throughout the workday.

3200-PSI Cold Water Pressure Washer

SUPPLY CHAIN EXCELLENCE Domestic production gets you the product you need on time.

www.mitm.com 800-553-9053

Made in

USA

with Globally Sourced Components

Mi-T-M manufactures: Cold & Hot Water Pressure Washers Air Compressors • Portable Generators Air Compressor/Generator Combinations Air Compressor/Generator/Welder Combinations Wet/Dry Vacuums • Jobsite Boxes • Portable Heaters Water Pumps • Water Treatment Systems 1

Made in the USA with US and global parts. Excludes 9V. ©Registered Trademark of Spectrum Brands, Inc. SPE-25075

Educated employees sell more. Employee training helps grow your bottom line. It also leads to better customer service, lower staff turnover and more confident and productive employees. Invest in your staff to advance their careers and your business.

By Jesse Carleton, jcarleton@nrha.org

Defuse the Time Bomb I

f you’re like most retailers, you know all too well what it’s like to arrive at the store in the early morning hours and not leave until after the sun has set. There doesn’t seem to be enough time to finish your to-do list. Long days are often par for the course when you sign up to be a retailer. There are days when big projects require big time commitments. But if long hours are the norm and you’re constantly concerned about how you will get it all done, it might be time to step back and look at the big picture. Are you using your time well? Are you working smarter, rather than just working harder? A strategy for managing your time will not only reduce your stress, but it will also give you time to grow your business. You’ll have a more balanced life as you make time for family and friends and space in your schedule to pursue those recreational activities that help you recharge for the next day of work. Hardware Retailing can help you get more out of your time. Two experts with experience in business who have learned to manage busy schedules offer some advice on time management and changing what may be unproductive work habits. When you learn to manage your time, you’ll find you have more time to meet your business goals and spend less time worrying about how you’ll get there.

Why You Need a Plan Having a strategy for managing your time isn’t just about organizing your calendar. It’s a way of getting work done so that you can be more productive. Byron Clouse oversees five hardware stores in northern Michigan, along with two grocery stores, an auto parts store, 18 condominium properties and other real estate holdings.

HARDWARE RETAILING | January 2019

T WITH TEAM MEE

Finding a Strategy to Get More Out of Every Day

CREA TE CIR C

IEW SALES REPORT REV TR

N AI

TAFF WS NE

FAM IL

YT I M E

FIN

ULE

E Z I AL

HED C S

January 2019 | HARDWARE RETAILING

He’s active throughout his community and still finds time to spend with his wife and two children. He says knowing how to manage your time is critical to the success of your business. “If you don’t have a strategy for managing your time, you procrastinate, you don’t get things done and you could actually end up failing. You will stress yourself out, and that will impact your quality of life,” Clouse says. Dr. Mike Goldsby, who teaches classes on entrepreneurship at Ball State University and has established himself as a leading researcher, speaker and author on the subject of entrepreneurship, agrees. Goldsby is also an instructor for the North American Retail Hardware Association’s (NRHA) Retail Management Certification Program, where he coaches young business leaders on how to be successful. He says the only way someone can expect to meet their goals is to know how to control their time. First, realize that being busy is not the same as being productive. “There are plenty of people who appear very busy, but at the end of the day haven’t accomplished much of anything,” he says. “People who manage time well are spending more time working on things that are important, rather than just staying busy.” When you get more done in less time, you feel less stressed, and that allows you to manage yourself and your business more effectively. Stress, whether you realize it or not, actually has a detrimental effect, not just on your health,

but also on your ability to make good decisions. “When you are stressed, you are not using your brain at its highest level,” Goldsby says. “You become more fearful and more reactive.” A stressed mind is less likely to process higher-level thinking, such as strategy and vision. It’s more likely to be caught up in trying to resolve whatever crisis may be on hand at the moment. On the other hand, if you are managing your time well, you are more likely to think about the big picture, set goals for your business, and then achieve them. When stressful situations do arise, you are better prepared to handle them than if you are continually operating in a state of crisis. An owner or manager who can regulate their own time well is in a better position to effectively lead their employees. Your attitude toward your workload will trickle down to other relationships, whether it’s to employees or family. “The way you operate affects more than just yourself,” says Goldsby. “If you are operating in such a way that you are in control of your time, the more likely employees will be less stressed when they interact with customers.” Employees who feel they are working in a low-stress environment are more likely to enjoy where they work and provide better customer service. Customers who sense an environment that is well-managed when they come to your business are likely to feel more comfortable shopping there.

Byron Clouse, who oversees multiple retail locations in northern Michigan, says having a time management strategy is critical not only for being successful in business, but also for reducing stress and living a more balanced life.

HARDWARE RETAILING | January 2019

Perhaps the most limited resource we have is our attention, not our time or money. We often are so distracted by keeping those to-do lists in our heads that we are unable to focus our full attention on one specific item. Find a Plan That Works What does a time management plan look like? More than likely, it will look a little different for everyone. Learning what works may be a process of trial and error until you find the perfect fit. And, it may take a while before your approach to managing your time becomes a natural part of your daily routine. What’s important is that you start somewhere. Clouse starts each week by listing all of the tasks he needs to do that week. That includes consulting with his father (co-owner in the business) so they coordinate efforts. He also prioritizes what needs to be done first and what he can delegate to his employees. Keeping his big-picture perspective includes letting his store managers execute the details of the day-to-day business and only stepping in when he needs to. When he knows the steps needed to reach a particular goal, he can push himself and his staff to complete each step at the prescribed time so he’s not scrambling to finish at the last minute. How Clouse manages his time comes practically second nature to him, he says. But if you’re just starting out looking for a plan, one good place to begin is one of the many models constructed by experts. The model Goldsby recommends to his students, and what he’s adopted in his own life, is called Getting Things Done® (GTD®), created by author and consultant David Allen. The premise of the plan is that people, in general, are very distracted, whether it’s from the bombardment of news and social media or from cramming our days with too many things to do. In fact, perhaps the most limited resource we have is our attention, not our time or money. We often are so distracted by keeping those to-do lists in our heads that we are unable to focus our full attention on one specific item. Allen’s solution is to put everything you need to do in a written list, and then start a

Byron Clouse (left) has created detailed checklists of daily tasks for his employees so they know what is expected of them. The lists also help them plan their day.

systematic approach of organizing and executing those tasks. He suggests these five steps. • Capture. Clear everything out of your mind that needs to be done. Make a list and put it in a place where it will not get lost. If you come to something that can be done in 2 minutes or less, do it then and clear it off your list. • Clarify. Ask yourself some important questions about what is on your list. Is it actionable? Decide what to do now, what to delegate and what to defer until later. • Organize. Divide the list into categories that make sense for your operation. • Reflect. Every week, review and update your list. This is where you can set priorities of what needs to be done next. • Engage. This is where you get those tasks on your list done. At this point, you are confident that whatever task you’ve chosen to do is the one that will make the most productive use of your time. Allen’s method, explained in greater detail in his book, “Getting Things Done,” is just one of many models created by experts who have studied productivity. When you find a method to try, you are just at the beginning of a long, but rewarding, journey to learning how to manage your time effectively.

January 2019 | HARDWARE RETAILING

Getting the Plan to Work

• Minimize Distractions

While it can be easy to theorize about time management plans, the real work comes in putting that plan into practice. For most people, adopting a strategy requires a change in mindset and means embarking on a long learning process. Goldsby and Clouse both identify ways busy retailers can improve how they manage time.

While some people may be able to multitask effectively, others are simply splitting their attention so that they are unable to focus on one task at a time, thus getting less done. In a retail setting, the result may be giving less attention to customers. Distracted employees end up providing sub-par customer service to employees. Putting greater focus on a task means you will likely get it done more quickly and do a better job. One way to eliminate distractions is to designate certain times of the day for certain tasks. Avoid the temptation to answer every email as it comes in, or respond to every text message immediately. It may be OK to ignore electronic devices for a short time during the day.

• Analyze Your Behavior The first step to having better time management may be taking self-inventory of how you are spending your time each day. Are there recurring stress points? What is most frustrating? Are there areas where you’d like to spend more time, but feel you can’t? “A good place to start is to ask what is the common denominator in all the things that stress you?” says Goldsby. “Many people realize that their behavior has a lot to do with the reason they are stressed.” As you analyze the way you spend your time, you may discover habits you need to break. For example, if you’re in the habit of micromanaging employees, it may be time to step back and let a trusted manager handle those tasks. Have patience with yourself as you break those habits. “When you start a time management plan, it’s not going to be easy, you need to be patient with yourself because it may be a while before you start to feel like you’re making a difference in how you get things done,” says Goldsby. “There will eventually be a tipping point where you feel you are making a difference.”

• Make Priorities One of the difficult parts of creating a time management plan is learning how to prioritize tasks. One plan, the ABC method, suggest separating tasks by (A) urgent tasks that need to be done now, (B) tasks that need to be done in the next week or month, but not right away and (C) tasks that are not critical. “A lot of people work on the C tasks first. They’re not critical issues, but they may be easier to do,” says Goldsby. “However, at the end of the day, you may not feel as if you’ve gotten anywhere. It’s those A projects that make you feel as if you’re accomplishing something.” Clouse does that by making his list at the beginning of the week of what needs to get done. He also does it when he makes his weekly visits to each of his locations. During a store visit, he makes a list of every task that needs attention. While he may pass that list off to a manager to finish, he’s identified what needs to be done first so his staff knows where to focus their time.

• Prepare to Break Traditions

Managing his time effectively at work allows Byron Clouse to spend more time serving the community and enjoying his family.

HARDWARE RETAILING | January 2019

More than likely, when you adopt a plan to manage your time, you are going to change the way you do your work. “A lot of the challenges I see retailers dealing with are family generational issues,” says Goldsby. “The way a parent ran the operation is different than the way the son or daughter wants to run it.” For example, the parents may have spent more of their time on the floor interacting with customers. As the next generation starts to think about how to best use their time, they may realize it’s more beneficial to spend time in the back office while a manager interacts more with customers. This may take some adjustment for an older generation of customer who always spoke to the owner.

Don’t accept a way of doing business simply because it is a tradition. Is a certain business practice stressing your time? Consider ways you can change.

• Do the Least Desirable Task First If you’re like most people, you’re most motivated to do the things you enjoy doing and the least motivated to do what you don’t enjoy doing. Undoubtedly, some days will have that one task you dread doing, and therefore more than likely you’ll procrastinate doing it. Put that task at the top of your list so it’s done first. Chance are, if you put that undesirable task off as long as you can, you’re going to waste time worrying about it. Good time management, says Goldsby, is spending less time doing what stresses you and more time doing what you enjoy. “Get those stressful tasks out of the way first and it will make you feel lighter the rest of the day,” he says. “You will also have that sense of accomplishment in having completed something difficult.”

• Learn to Delegate If you’re trying to manage your time and continue to feel overwhelmed, or if you feel like you’re still in a reactive mode, something may be wrong. Maybe you’re simply trying to do too much and you need to delegate, Clouse says. “You cannot do it all,” he says. “You have to be able to let go and have good people help.” With multiple retail locations, Clouse does not have time to be hands-on at every level of the business. He checks in with managers at each location every week, but generally lets them manage the day-to-day tasks. Time management isn’t just about your own time; it’s learning to manage your employees’ time as well. While Clouse advises against micromanaging employees, he does think it’s beneficial to have some tools in place that can help your employees be productive. He has created guidelines employees can utilize to remind them how they should manage their day. These checklists include everything from punching the timeclock to reminding them to ask open-ended questions when they’re waiting on customers. “By having a plan of expectations and tasks, I’m helping them manage their time,” he says. “But it’s also important to show how to balance that with customer service. We don’t want them to become so task-oriented that they forget the customer.” Learning to delegate also means training and empowering people down the ladder of responsibility to do more on their own. “You may need to teach employees to do more problem solving on their own, instead of always relying on the manager,” says Goldsby. For example, some employees may rely on senior members of the staff, or even the owner, to answer a customer’s question. While in some cases this may be necessary, very often it results in using the time of two employees for a task that should be handled by one. Offer product knowledge training to employees so they are prepared to handle questions on their own.

Byron Clouse successfully integrated a grocery store and a hardware store in Oscoda, Michigan, giving locals a one-stop-shop in a 43,000-square-foot building.

Recommended Books If you’d like to learn more about time management, both Mike Goldsby and Byron Clouse have books they recommend you read.

Getting Things Done By David Allen “This guide will lay the basic foundation for how to structure your time. It helps you learn the art of stress-free living.” —Mike Goldsby gettingthingsdone.com

The E-Myth: Why Most Businesses Don’t Work and What to Do About It By Michael E. Gerber “This book inspired me to create a plan for my employees that helps us deliver a consistent customer experience.” —Byron Clouse michaelegerbercompanies.com

January 2019 | HARDWARE RETAILING

DESIGNER GREETINGS STORE-IN-A-STORE 50% OFF PROGRAM IS A “BIG HIT”! Card$mart and Designer Greetings CEO and President, Steven Gimbelman, discusses the company’s nationally recognized brand and why the Store-In-A-Store concept is right for Hardware Stores today Q: Why should Hardware store owners think about bringing a Card$mart Store-In-A-Store

Q: What separates Card$mart from the other card companies? A: For more than 20 years, Card$mart has been the only

to their location? A: With the pressure that brick and mortar stores are facing, nationally recognized value brand of card and gift shops the Card$mart Store-In-A-Store concept is coming in North America with the attractive and successful value about at the perfect time, as a way to help increase foot proposition of “50% off, every card, every day” concept. traffic to the store. This program sells greeting cards and gift Having a nationally recognized value brand not only will wrap product to the consumer at 50% off the published entice customers to view the location as a destination shop, retail. Traditionally, hardware stores offer building and but also help to attract new customers seeking to purchase home renovation supplies, however, this concept adds a high quality products at a value price. This unique shopping unique product offering that will attract a new clientele, the experience offers buyers multiple product options within female shopper. The Card$mart’s Store-In-A-Store model’s their Hardware store. statistics are in the favor of the hardware retailer, as 80% of Q: What are the advantages for Hardware Stores the purchasers for the product are women. across the United States when they decide to install While the cost to the consumer is half off the published the Card$mart Store-In-A-Store concept? A: retail, the greeting cards and gift wrap products do not Card$mart has an experienced sales and administrative sacrifice on quality. Card$mart products are equivalent to team of professionals, with years of knowledge in the retail the competition’s high-end full price card lines, and with sector of card and gift. The Card$mart team provides today’s savvy consumer, the high end finishing touches are support and guidance along the way, assisting the “new sure to impress. Moreover, while the consumer will receive comer” or a long-time retailer in various aspects of the quality product at a value price, the likelihood that they business. The collaborative partnership is a significant part may purchase more units will ultimately drive up retail sales. of the success of the Card$mart model. In addition to the Card$mart team, the retailer will join a tight knit community Card$mart’s primary vendor and parent company, of Card$mart store owners who will share ideas that will Designer Greetings, is a leader in the social expression assist in building a successful business. As a member of industry with over 22,000 designs and the most extensive the Store-In-A-Store network, the retailer benefits from being title selections. Both Designer Greetings’ and the advertised on the Card$mart website store locator. Given accompanying premier gift wrap line - “Glitterwrap” the growing trend toward consumer’s use of social media, are nationally recognized brands. Glitterwrap includes having the store listed on the Card$mart website is just one a variety of gift wrap items such as; gift wrap, roll wrap, example of Card$mart’s forward thinking vision and gift bags, bows, and ribbons, all in a variety of sizes and promotional support for the retailer. shapes to suit every customer need.

www.CardSmartStoreInAStore.com • @CardSmartCardAndGift • 800.654.6960 ADV ERTI SE ME NT

PRESENTS

BRING CARD$MART INTO YOUR HARDWARE STORE TOP BENEFITS OUT VALUE THE NATIONAL CHAINS INCREASE STORE TR AFFIC NATIONALLY-RECOGNIZED BR AND EXCLUSIVE GIFT WARE PROGR AM CARD$MART RETAILER NET WORK STORE LOCATOR LISTING EXCLUSIVE “CARD SHOP ” DEPARTMENT SIGNAGE

C A L L F O R A F R E E C A TA L O G T O D A Y ! 800.654.6960 USE CODE: CSHW19 W W W. C A R D S M A R T S TO R E I N A S TO R E . C O M

#CARDSMART

By Chad Husted, chusted@nrha.org

New Cook in the Kitchen Technology Brings More Options to the Housewares Department

adgets are a fundamental piece of the hardware industry. Adults can get the same sense of wonderment as children with a new toy when they get their hands on the latest piece of technology. Kitchen tools can bring much of the same excitement as more common categories such as power tools. They can save time, increase safety in the kitchen and add great diversity to the housewares department. One area that has more than its share of gadgets is small kitchen appliances. Kitchen appliances have become as sophisticated as the most modern power tool, and consumers are looking for these products in growing numbers. Retailers have expanded their homewares and kitchen appliances departments with a goal toward achieving a one-stop shop for the budding home cook. Making kitchen gadgets a standout area of your business can highlight how advanced a kitchen department can be. From spiralizers to pressure cookers, kitchen accessories run the gamut of designs, purposes and price points. Hardware Retailing spoke to two retailers who have expanded their kitchen appliances department beyond pots and pans to find out what consumers are looking for and how independent home improvement retailers can make the most of this key department.

HARDWARE RETAILING | January 2019

Kitchen Plus More is a 2,500-square-foot location offering hardware categories along with upscale kitchen appliances and decorative items. The Long Island City, New York, business is part of a larger retail operation that also includes grocery stores, owner Ovidiu Teja says. Prescott True Value, located in Prescott, Arizona, built its kitchen offerings in a community that was undersupplied, manager Suzanne Springer says. The 30,000-square-foot location devotes over 4,000 square feet of its salesfloor to kitchen appliances and gadgets, incorporating these items into a broader housewares and gift area that allows for a diverse product selection. To see how some of these kitchen items work, check out TheRedT.com/chef-chad, where Hardware Retailing editor Chad Husted demonstrates a few of his favorite cooking techniques.

Elevating the Kitchen While small kitchen appliances and cooking tools are familiar sights in many independent hardware retail businesses, high-technology devices like electric pressure cookers toe a line that allows them to be looked at similarly to high-end power tools or innovative hardware products.

Along with kitchen appliances and gadgets, the housewares department at Prescott True Value includes high-end and unique items for a diverse selection.

December January 2018 2019 | HARDWARE RETAILING

The time-honored method of stocking good, better and best selections can also work in housewares in addition to more common categories. Kitchen Plus More also stocks a wide variety of decorating items and high-quality cooking gadgets.

The added technology in some items, such as multicookers, which can be used to cook anything from rice to stews, can elevate mundane cooking products to technological marvels that inspire the same kind of following that turns power tool departments into destinations for enthusiasts. Cooking shows on TV and the expansion of the culture of cooking for fun has grown the market for more advanced cooking products. For hardware retailers, stocking kitchen items, and gadgets in particular, can bring non-DIY customers or those less inclined to take on a home improvement project into a store. At Kitchen Plus More, Teja has built his business around the concept of keeping his product selection high-end and treating his

7 Key Kitchen Gadgets Small kitchen appliances have come a long way in recent years, adding new technology and making cooking techniques once reserved for the busy restaurant kitchen available for the home cook. Stocking these items, and being knowledgeable of their uses, can enhance any housewares department and draw in a new demographic of customer. In the next few pages, take a closer look at some of the hottest kitchen gadgets on the market and see how you can incorporate these items into your housewares department.

HARDWARE RETAILING | January 2019

hardware and kitchen-supply business similarly to his grocery store locations. Wide aisles, bright and welcoming environments and upscale selections have helped the business become a noted destination for home cooks and party hosts looking for the next hot item. These kinds of products include electric pressure cookers and top-flight toaster ovens capable of air frying, baking and toasting, as well as quality cookware-like pots, utensils and linens. A common advantage of newer appliances is the ability to cook multiple types of food or use multiple types of cooking in one product. For example, a toaster oven now can go from making a simple piece of toast to frying up a full meal of fish and chips, if it has the ability to air fry.

Sous Vide Cooker These cookers heat a pot of water to a specific temperature and maintain that temperature, allowing food to be placed in plastic bags and submerged. The constant water temperature and circulation allows foods to be cooked to an exact temperature and not beyond.

In hardware, retailers are often quick to seek out how to make a store a one-stop shop. The same attitude needs to be applied to kitchen appliances to find success in that category, Teja says. “From preparing meals, to serving them, to cleaning up after and storing food and cookware properly, we have everything a homeowner needs,” Teja says. “Once we took the approach of stocking items that not only accomplished a goal, but looked good doing it, we were able to make ourselves known in the local cooking community.” When deciding on what kinds of kitchen gadgets to devote money and space to, Teja looks at how technology has updated some tried-and-true kitchen tools while also offering more options than ever before. Some of the most popular products are designed to turn a tedious chore, like mincing garlic or peeling ginger, into an easy, simple and more enjoyable task. Teja cites one popular product, a kale peeler that is specifically designed to strip the leafy parts of the popular plant while leaving the discarded stems, as a product that makes a chore more efficient. Kitchen Plus More stocks a variety of peelers and small gadgets that allow a customer to personalize their own cooking experience. “Customers are looking for these kinds of specific items, so if you don’t have what they’re expecting from you, they’ll leave,” Teja says. “It’s no different than when you look at your hardware selection. Does every customer need three types of pliers? Probably not, but you need to be prepared for the customer to have a variety of similar products to choose from, or it will lead to poor customer satisfaction.” Having a solid product selection isn’t the only way retailers can develop a following for home cooks. At Prescott True Value, kitchen gadgets like spiralizers and stovetop popcorn poppers show the store is well stocked in tools, which grows interest in other niche areas like gourmet foods and an expanded gift department.

The housewares category allows retailers to get creative both with their product variety and their merchandising tactics.

Immersion Blender

Electric Pressure Cooker

The convenience of a smaller and more focused blending implement is best shown the many roles of an immersion blender. These items can crush ice, puree vegetables and emulsify a salad dressing all without bringing out a larger countertop blender. It’s also easy to store and clean.

This is one of the most useful tools in the modern kitchen. Most models can work as a pressure cooker, a rice cooker and a slow cooker while also being useful for canning. Available in multiple sizes, electric pressure cookers can make any home cook look like a five-star chef.

January 2019 | HARDWARE RETAILING

“We’ve really looked at our kitchen area, and gadgets in particular, like we would other high-end hardware items, like power tools,” Springer says. “It can be a small addition, like a waffle iron shaped like a cartoon character or a soda machine that allows customers to make customized soda flavors, that can catch a customer’s interest in something they would have passed over before. Then they’re exploring the store even further, and those add-on items come into play.”

The cooking market is always expanding with new takes on serving dishes as well as cooking tools. Explore niche markets to find the latest trend.

The Secret Recipe Retailers are always seeking out industry resources to spot trends in the world of hardware, and it’s no different when focusing more closely on housewares and the next big thing in the culinary world. For Teja and Springer, the most important ways to stay on top of trends is not letting housewares items become stale, and discovering how to find unique products and new ways to display them. Springer has always used co-op markets and other traditional hardware shows as her primary sources for updated hardware items, but attending niche markets tied to kitchen and gift products have been part of her strategy from the beginning, she says. This can include larger shows, such as the annual International Home and Housewares Show, and smaller regional trade shows can also be beneficial, she says. “We’ve always been very proactive in choosing which markets to attend. Each one has a different focus, and by changing up your market schedule, you’re expanding your options and diversifying the products you carry,” she says. “It keeps a business from being predictable, and when you are talking gadgets and new technology, you want to be known to have some surprises.” Another manner of staying on top of culinary trends is using online competition as a resource. Teja says he explores Amazon at least once a day to see what kinds of deals are being offered and how the company is marketing different items to its customers. This can pinpoint buying trends that can be implemented directly at Kitchen Plus More, he says. Teja is looking to expand the online shopping availability at Kitchen Plus More, as well as offer free delivery to the area, but utilizing online portals is not just about mimicking their business methods. “One area that stood out in our research was a trend toward green cleaning products,” Teja says. “We’d see those items being heavily marketed on

Vacuum Sealer

Air Fryer

Sealing food can be useful both for long-term storage and in cooking methods like sous vide cooking. Food can be placed in specially designed bags, and the vacuum sealer pumps all of the air out of the bag and forms a tight seal around the food. This prevents freezer burn and can also enhance flavor.

These appliances heat a tray or basket to very high temperatures in a short amount of time while circulating air constantly. This develops a similar texture and taste to food that has been cooked in oil, but without the unhealthy results of deep frying.

HARDWARE RETAILING | January 2019

Kitchen items can range from specialty slicers like spiralizers to high-tech versions of more common items like pressure cookers and coffee pots. Prescott True Value has committed to expanding the variety found in its housewares department.

online deal sites, with an emphasis on companies producing items that saved on waste or used fewer chemicals. We developed our own strategy to emphasize those kinds of products. We see sites like Amazon as a resource, not an enemy.” Given the proliferation of cooking shows and the overall growth of home improvement entertainment, finding inspiration in entertainment also helps. Teja points to YouTube videos and online reviews that can inform him on what kinds of gadgets are being used in home kitchens and how he can best market these items to customers.

However a retailer finds the next big gadget, expanding the kitchen goods sold and improving the technology level of kitchen appliances are options for independent retailers to explore. “Expanding kitchen goods in a housewares department doesn’t just increase your abilities to offer fun gadgets; it also allows for greater creativity in your store,” Springer says. “Customers can expect different things from a store. You’ve created an expectation for diverse products. You’ll have customers coming in just to see what new item you’ve found for them.”

Spiralizer

Bluetooth Thermometer

These slicing implements allow cooks to replicate the texture of pasta but replace dough with vegetables. Spiralizers come in many shapes and sizes, from versions that attach to standing mixers to handheld, and can slice vegetables into slices like lasagna or into strips like spaghetti.

Whether you’re cooking a roast in your oven or grilling steaks in the backyard, having a meat probe is one of the best ways to cook protein just right. It only makes sense to have a thermometer that can buzz you when your steak gets to that perfect medium-rare temperature.

January 2019 | HARDWARE RETAILING

By Jesse Carleton, jcarleton@nrha.org

Stack-Out Disaster What’s Wrong With This Picture?

ook at the photo below. Do you see anything wrong? Anything you would improve? More than likely, you have a solid idea in your head about how good merchandising should look: Neat, full, clean displays arranged so attractively that every customer feels like a kid in a candy store. Most of you will likely admit that, from time to time, there are displays in your store that might stray from your original intention. Merchandise gets misplaced, shelves go empty, point-of-sale signage gets damaged—there are many reasons why something goes wrong with a display.

HARDWARE RETAILING | January 2019

This year, Hardware Retailing challenges you to improve your merchandising. Editors will choose a series of merchandising photos focused on basic retailing displays. These are displays that, even if they have some strong points of merit overall, still have room for improvement. There might even be some glaring errors. In this issue, the focus is on stack-out displays. Study the display of dog food below to identify problem areas or where something could be improved. Then, turn the page for the answers and an explanation of some of the basic tenets of merchandising stack outs.

NOLIMITS

HARDWARE SAVINGS MARKET January 10-12, 2019 Opryland Convention Center Nashville, TN Here’s Why Our Customers Love Attending the Markets H A R DW A R E C O M P A NY

Product Discovery “I love attending the dealer markets, because you see a lot of good deals and discover products you wouldn’t know about otherwise.” -Brad Garner, Bayou George Grocery & Hardware, Panama City, FL

Brad Garner

Well-Run Organization “You see what a well-run organization House-Hasson is and what a large selection of products they have to offer.” -Ron Horne, Carolina Hardware, Marshville, NC Ron Horne

Buying Smart “The markets are so important. We know we need to be smart with our buying to stay competitive and you learn so much. Plus, we have so much fun.” -Cathy Croley, Crescent Springs Hardware, Crescent Springs, KY

Cathy Croley

We invite you to join us to see what we have to offer: • • • •

Hot deals at Bonus Buy Breakfasts Unbeatable Prices Great Payment Terms Electronic Ordering

• • • •

Educational Seminars Marketing & Store Service Solutions Travel Rewards Program Great Food and Entertainment

For more information about our Market, contact us today!

1-800-333-0520 ext. 212 • www.househasson.com • House-Hasson Hardware Co., 3125 Water Plant Road, Knoxville, TN 37914

1 Price Check

3 Trip Hazard

There are several reasons why stack-out displays are effective. They’re easy to create, they show you are well-stocked in a key product and they promote a low-price image. But they can’t do much to promote that low-price image if the cost is hidden on a small tag. Make the price signage big and bold so it catches every customer’s attention. If you are using the stack-out display to hold items you’ve advertised, consider placing them near other items in the category for add-on sales opportunities.

2 Unwanted Visitor

4 Inside Out

Since they sit in heavily travelled aisles, stack-out displays might collect strays. Whether it’s an item a customer decided to leave behind or a coffee cup someone set down and forgot, anything that doesn’t belong on the display needs to be discarded as soon as possible. Those items make the display look cluttered and detract from its overall appearance. Keeping merchandising free of debris is important in any area of the store, but especially for displays that sit in a power aisle.

3 4

HARDWARE RETAILING | January 2019

Always be on the lookout for safety hazards around the salesfloor. A bag sitting on the floor in a busy aisle could get kicked, damaged or even trip customers as they pass. Always restack products as soon as possible. If items are not neatly stacked, straighten them so they are neat and symmetrical. That should be a part of each employee’s regular routine. It only takes a few minutes to straighten up a display as you’re walking past, but it makes a big difference in the store’s overall appearance.

When you see damaged product packaging, move it to an area where you can sell it at a discount or discard it. Broken packaging that creates a mess in the aisle makes the store look dirty and leaves a bad impression on shoppers. Spills aren’t always as benign as a broken package of dog food, either. If you have a spill in your paint and chemical aisle, for example, make sure all of your employees are familiar with the proper cleanup procedures and how to vent hazardous fumes.

By Renee Changnon, rchangnon@nrha.org

Lights, n o i t c A , a r e m a C etailer R a h t i W cenes S e h ustr y t d d n I n i t h n e e B m o G ter tain n E e h t g n i Supply

hen Jim Robichau sits down to stream the latest Netflix show with his wife or takes her to a movie, he is often more intrigued by the set and scenery than the stars on the screen. As owner and operator of Backstage Hardware, a home improvement and theater supply business in Boston, Robichau has established his operation as a reliable dealer of home improvement products and supplies for busy set designers and stage runners in the entertainment industry.

HARDWARE RETAILING | January 2019

Hardware Retailing spoke to Robichau to learn about how his business has made a name for itself by helping artists set the scene for movies and plays. Read on to discover the specific products Robichau sells to this industry, and how these items differ from those typically found in a hardware store. You’ll also discover the customer service tactics that have led to repeat business for Backstage Hardware, from locating hard-to-find items or delivering directly to the set.

Selling on Location Backstage Hardware has been a combination hardware and theater supply business since it opened in the late 1980s. But after the founders sold the business, it struggled with its second set of owners. In 2013, Robichau became the third owner to take control of the operation, and he was eager to breathe new life into the failing operation. Prior to owning the store, Robichau served as the chief financial officer of a landscaping supply company and had also acted as a consultant for a company that helps small businesses take steps to improve their operations. With these experiences and his personal work ethic, Robichau focused on how to become the best supplier for films and theater productions in and around Boston. His entertainment industry customers make up about 40 percent of total sales for the store. And while Robichau says he’s found ways for the business to remain relevant and keep clients returning, other retailers interested in the theater supply business should take into account their audiences and locations. “For a retailer considering selling theatrical equipment, it might be difficult to get into, because you really need to carry a lot of stock up front,” Robichau says. “However, it can lead to a profitable business, depending on where a store is located and if a relationship is established with a major university or a film studio.” In addition to well-known film and television production cities like Los Angeles, New York and Vancouver, Boston is one of many cities that has made a name in show business thanks to financial incentives offered by the state. To learn about other states where unique incentives have led to film and production opportunities or to see if your operation might be able to be a supplier to the industry, go to the Last Word on Page 78. In addition to film and television productions, one of Backstage Hardware’s top clients is the American Repertory Theater (A.R.T.) located at Harvard University, says Robichau. Harvard alone has seven stages on campus, and the store has even delivered materials to five of them in a single day. According to Robichau, retailers in areas where the community has a widespread interest in the performing arts should connect with their local universities and high schools to advertise the products and services they offer. If they carry or can order theatrical supplies, this outreach could lead to a profitable business relationship. “To expand our reach, I connected with high schools in the Boston area,” he says. “Some of these schools had large theater programs and

were buying products from big-box chains. I asked one of our theatrical suppliers to come to our store and host a workshop with high school drama teachers, which not only introduced the teachers to our high-quality product offerings, but also created awareness of our store and led to new business relationships.”

Products Ready for Their Close-Up At 5,000 square feet, Backstage Hardware is fairly large for an urban location. Customers can find anything they would expect from a regular hardware store, as well as steel and other goods that serve the shipyard across the street. “When customers walk by, they see a cool neighborhood hardware store,” Robichau says. “However, inside the store, they’ll quickly discover the many different theatrical items we sell. It might seem like an odd combination, but it’s been the perfect fit for Backstage Hardware.” To successfully attract and earn repeat sales from set designers and other artists, Robichau says a retailer needs to have the essential “expendables,” which is a term used in the entertainment industry to describe the products required to create a set. A few of the main expendables Backstage Hardware stocks include scenic paints, specialized tapes and theatrical lighting equipment. “We sell the top two theatrical paint product lines that scenic painters use,” Robichau says. “This paint is different than paint typically found at a hardware store.”

Backstage Hardware has carved out a picture-perfect niche by selling theatrical equipment since its founding in the 1980s, and it continues to thrive today.

January 2019 | HARDWARE RETAILING

“Unlike house paints, which reflect light, scenic paints have a completely matte finish. Also, the pigments in this type of paint are pure, so it can be thinned out to tint things,” he says. In order to stand out against other theatrical supply businesses and online competitors, Robichau stresses the importance of having multiple brands of scenic paint, because he says creative professionals who utilize this paint often have very specific brand demands. Additional paint supplies to go along with these paints include artist brushes, buckets, strainers, vinyl and latex gloves and aprons. Robichau says his customers often add additional scenic supplies to their order, like flameproofing products, sandbags, or a nontoxic composite fabricating resin used to create various props and set constructions. Another product that Backstage Hardware sells in large quantities to set designers is gaffer tape. While it is similar to duct tape, those working in theater or television production prefer to use it because it is more resistant to heat and is easily removed without damaging the surface it was adhered to. “Most of my entertainment industry clients require gaffer tape, and they buy it in a wide range of colors and widths for different purposes,” Robichau says. “They use different colored tapes to mark where actors will stand on stage or to keep cords and carpets secured for safety or concealment.” Another theatrical category Backstage Hardware is well stocked in is specialized lighting products. Many of these items wouldn’t be found in a typical lighting department of a hardware store, but it’s something Robichau knows he needs to have to compete with businesses that exclusively sell expendables to the industry. An example of one such lighting product is gels, also known as color filters. Color filters come in a variety of styles but are used by set designers and light designers to add color directly to a set. With bright lights comes the need to cool items in the glow of the heat, so Backstage Hardware also has a range of protective filters that extend the life of expensive color filters.

Focusing on Customer Service

Top: One way he has kept a loyal customer base is by offering the top two brands of scenic paint in house. Bottom: Those he worked with have shown gratitude for his loyalty by creating this statue with materials he sells in his store.

HARDWARE RETAILING | January 2019

Just as customer service is important for the walk-in DIYer, it is equally crucial for generating repeat business within the entertainment industry, Robichau says. However, the type of service provided is less focused on educating and more focused on meeting their demands quickly and efficiently. “When a movie or television crew sets up for production, they bring a tractor trailer full

One of the most important product lines a retailer needs to have on hand when selling theatrical equipment to the entertainment industry is gaffer tape, which is used to mark the stage for actors and keep cords secured.

of expendables,” he says. “Yet no matter how much they buy and stock up on, there are often changes and new items they need—that’s where Backstage Hardware comes into play.” According to Robichau, the expendables Backstage Hardware carries must be fully stocked, otherwise he could easily lose sales to a competitor. However, some items have to be special ordered, and that’s when going above and beyond to get what a customer needs can pay off, he says. “A few years ago, during the filming of a major motion picture, I got a request for high-quality studio chain, which is a type of steel chain,” Robichau says. “I told them I had a few 100-foot boxes, but they said they needed 1,000-foot barrels of studio chain. I called my supplier and shocked him by ordering three barrels, which equates to 14,000 feet of chain. In my experience, if you come through and can handle major requests like this quickly, your customers will be sure to continue doing business with you.” And while finding a way to handle some of the odd requests might seem stressful, Robichau says this is where Backstage Hardware shines. “If I wasn’t willing to go the extra mile and find the items they need, I wouldn’t serve this industry,” he says. “I enjoy the challenge of getting customers hard-to-locate items. It drives big sales for my business as well.” According to Robichau, most film projects can earn his business a sizeable profit, anywhere from

$2,500 to $10,000, depending on the size of the project, length of time they’re in town and their production needs. The biggest business he did was when the 2016 “Ghostbusters” movie was filming in Boston, contributing $50,000 to the operation’s sales in the course of a summer. With about six years of experience serving the entertainment industry, Robichau says most of his business comes from repeat customers, and others who have heard of his company through word-of-mouth recommendations, even leading to sales outside the state. “There aren’t many retail stores that production teams can turn to in a bind,” Robichau says. “Because of our reputation, we’ve even had our business sought out by groups filming outside Boston. In fact, when a Netflix series called “Mindhunter” was filming in Philadelphia, the head of their scenic department reached out to me and asked us to deliver products to them.” Whether someone comes to the store to pick up an order or Robichau gets in his truck and delivers right to the set, he admires the work that is created with the products he sells. “The people in the film industry are very impressive artists and builders,” Robichau says. “I always find it so interesting when I get to deliver to the set and see what they’re making before it’s on screen. It’s cool to know Backstage Hardware played a role in the creation of a show.” January 2019 | HARDWARE RETAILING

CUSTOMER SUCCESS STORY

HEPLER’S HARDWARE RockSolid MAX™ POS Provides Strong Foundation for Future Growth

hen Megan Orient and her brother Robert, co-owners of Hepler’s Hardware in New Stanton, PA, made the decision to switch from a completely paper-based management system to business software, it could well have been a disaster.

THE ROLE OF HARDWARE STORE SOFTWARE IS TO SUPPORT A COMMITMENT TO SERVICE They recognized such a move was long overdue but the stakes were high. “Hepler’s,” says Megan, “is a quintessential old-time hardware store and proud of it.” Current management represents fourth generation of the family to run the business, which has the history of service to the community that goes back over 75 years. During all that time, she reports proudly, they’ve never been closed by snow. This fact reflects a commitment to service that is deeply ingrained in a veteran team of employees who genuinely view their customers like an extended family. But while those employees represent a key component of Hepler’s overall value proposition, most of them are not tech-savvy. So bringing in the wrong hardware store business software could have had catastrophic results. Fortunately for Megan and the rest of the team, they chose RockSolid MAX from ECi Software Solutions and results have been anything but catastrophic.

AUTOMATION AND REMOTE MANAGEMENT FREED THE STAFF TO FOCUS ON CUSTOMERS The decision to automate, Megan explains, was part of a long-term business plan aimed at positioning the company for the future. “My brother and I were

becoming more actively involved in the business and we were looking for a way to better manage things going forward,” Megan says. Geography complicated the software search. “Neither one of us are local to the area and we needed a program that would allow us to manage remotely as much as possible,” she explains. Finding the right program took a full six months, Megan recalls. As project manager for the whole effort, she looked at several different solutions and at the end of the day, one stood out from all the rest: RockSolid MAX.

ONLY A HARDWARE INDUSTRY-SPECIFIC SOLUTION COULD SAVE THE COMPANY EFFORT AND EXPENSE “We really liked the idea of using a program that was specifically designed for the hardware industry and RockSolid MAX certainly fit that requirement,” she says. “For us to have to customize generic software to meet our specific needs, and then have to maintain it, would simply have been too time-consuming, too complicated, and too expensive. I’d say this is particularly so, since our staff, for the most part, does not use computers on a regular basis themselves.” The sheer volume of SKUs involved in hardware retailing provided a further argument in favor of industry-specific software. “The number of different items you have to work with in a hardware store is enormous and if you’re relying on a generic program that’s designed for just a couple hundred or even a couple thousand SKUs, that could become a real

limitation,” Megan warns. RockSolid MAX POS software for hardware stores removed any potential limitations.

to wait on hold and they always had the answer to my question,” she says.

NOT JUST POS SOFTWARE, BUT A SOLUTION THAT SUPPORTS BUSINESS EXPANSION

For Megan and her team, good service on any level is critical. “As a business, Hepler’s prides itself on service excellence and the ability to take care of customers,” she says. “We’ve found the people at RockSolid MAX have a similar attitude. Their tech support staff has been there for us every step of the way and they want us to succeed and use the system to grow.”

“When we looked at RockSolid MAX, we saw a program that could not only take care of our immediate needs, but that also would be able to support us as we grew and got more involved in categories such as lumber, fencing, and so on,” she adds. “Software represents a big investment and you don’t want your system to be at capacity within six months of implementing it. We knew that wouldn’t be an issue with RockSolid MAX.”

FROM CONVERSION TO IMPLEMENTATION, TO DAILY SERVICE, SUPPORT WAS ROCKSOLID “I have no hesitation about giving five stars to our implementation specialist at RockSolid MAX,” says Megan. “He was extremely accessible, an excellent teacher, and very good at understanding our specific needs and setting up the system to meet them.” And unlike some systems, support stayed strong once the Hepler’s team was live with the program. “We got great customer service from RockSolid MAX after the conversion,” Megan reports. “To begin with, we were calling daily, and when we made those calls, the RockSolid team was very responsive. Rarely did I have

When we talked to Megan Orient, Hepler’s had been live on RockSolid MAX for just about a year. Even though she’s the first to admit they’re still learning aspects of the program, her enthusiasm for the changes RockSolid MAX has brought to the company comes through loud and clear. “We have so much more insight into what’s happening with the business than we ever had before and it’s generated some tremendous time savings for our people,” she says. “RockSolid MAX is a very good product that is specifically designed for the hardware industry and supported by people who have a lot of hardware industry experience themselves,” she adds. “It has put us in a very good place today, and I know it’s only going to make us even stronger going forward.” For more RockSolid MAX success stories, visit: https://www2.ecisolutions.com/rocksolidmax-stories

GET ADVANCED TECHNOLOGY WITHOUT BREAKING THE BANK! RockSolid MAX™ cloud-based software for hardware stores and home centers, can transform your business without a huge upfront investment. Get cutting-edge technology, at an affordable, fixed monthly price—no servers or special equipment needed. UPGRADE YOUR BUSINESS. SIMPLIFY YOUR BILL. www.ECiSolutions.com/RockSolidMAX

RockSolidMAXInfo@ECiSolutions.com

800.588.5128

By Todd Taber, ttaber@nrha.org

Balancing Act

Positively Managing Negative Online Reviews

ticks and stones may break your bones, but negative online reviews can sink your business’s reputation. For many independent retailers, online reviews from customers on social media and review sites like Yelp are becoming an increasingly important piece of their online identity—one they may have little control over. According to data from search marketing company BrightLocal, 90 percent of consumers read online

HARDWARE RETAILING | January 2019

reviews before visiting a business, and 84 percent of people trust online reviews as much as recommendations from friends or family. As businesses develop social media foundations, paying attention to positive and negative online chatter is crucial, says Jessica Bettencourt, president of Klem’s Hardware in Spencer, Massachusetts. She shares her strategy of balancing negative reviews with positive content and direct customer outreach to manage reviews professionally.

Heard It Through the Grapevine Bettencourt’s grandfather founded Klem’s in 1946, and she spent her childhood learning the ins and outs of the busy retail operation. She cashiered as a teenager, then worked in receiving and later as a department manager before becoming president in 2011. Over the years, she’s seen the business adapt to changing customer behavior and technology, including the emergence of social media. Klem’s has been active on social media for about 10 years, and focuses on offering its 15,000 Facebook followers a mix of lighthearted content, product information and store news. She agrees independents need to keep a close eye on online reviews to manage their online presence effectively. “I think you have to pay attention to online reviews,” she says. “We try to make sure our social media presence is neutral, fun and always focused on positive news. I think it’s easy to post something that can be taken the wrong way, so we try to avoid that.” But what she and the Klem’s team post is only one portion of their social media presence; in its time online, Bettencourt says the business has received occasional negative reviews. She says establishing a positive online atmosphere with your own posts is one way to counter these reviews. But she also recommends addressing the situation directly to ensure a customer feels acknowledged and to defend your business’s reputation. Bettencourt recalls a time where a disagreement between customers spiraled into a negative—and inaccurate—online review. A crying child led to an altercation between two customers, and the Klem’s staff ejected a shopper who cursed loudly in the store. That shopper told a friend she was ejected because of her crying child, and that friend then posted a Facebook review saying that the business regularly throws out customers with crying children. “The fear was that the review would go viral,” Bettencourt says. “We see that every day online, and people just repost things without knowing if it’s true or hearing the other side of the story.” Bettencourt says it was critical to reach out to resolve the issue by explaining the business’s actions clearly and truthfully. She also responded directly to the negative online review, an action she hoped showed other customers that the business was both responsive and honest. Bettencourt says that kind of negative and false review is an isolated incident, but she

recommends retailers respond to all online comments professionally. “For more general comments, it’s always about finding a way to help a customer,” she says. “If they had a bad experience with a product, we offer to refund it. If they had a poor experience in the store, I ask them to contact me directly. As long as you’re showing customers that you know you made a mistake and are providing solutions to fix it and offering your contact information, then other customers see you’re proactive.”

In business since 1946, Klem’s Hardware in Spencer, Massachusetts, has changed with the times to develop a positive social media strategy.

January 2019 | HARDWARE RETAILING

To Delete or Not to Delete Bettencourt says that she’s been tempted to delete negative reviews in the past, but has decided against it. “I have never removed a review, but I have blocked someone from making comments,” she says. “I’ve had reviews that called me a crook, that attacked me personally, but I’ve left them up.” Bettencourt says deleting comments can be seen as ignoring a problem. Instead, she blocks users who post inappropriate content. “Some people are just looking to pick a fight. It’s important to be the bigger person and rise above it,” she says. If retailers find they truly need to remove a review, Bettencourt recommends first reaching out to the customer online to explain the reason for the removal and invite them to discuss the matter further with a member of a business’s management if they wish. Bettencourt recommends retailers use the same tactics on social media as on review sites. “Take the same strategy no matter which site you’re on,” she says. “Stay positive, because people can see what you’re saying, so make sure you’re setting a good example.”

To set the social media tone, the Klem’s Hardware team posts behind-the-scenes photos of the team in action.

AD INDEX Ajax Wire Specialty Co. .............................................. 24 www.ajaxwire.com; 855-966-2529

International Home + Housewares Show 2019......... 25 www.housewares.org

NRHA Membership .................................................... 47 www.nrha.org/membership

Delta ............................................................................. 5 www.deltafaucet.com; 800-345-3358

IPG................................................................................ 3 www.itape.com; 888-898-7834

NRHA Young Retailer or the Year ............................. 79 www.nrha.org/yroty

Designer Greetings ............................................... 54-55 www.cardsmartstoreinastore.com; 800-654-6960

Iron & Oak .................................................................... 1 www.ironandoak.com/hrm; 866-281-4509

Orgill Inc. ............................................................. 80-IBC www.orgill.com; 800-347-2860

Do it Best Corp...................................................... 12-13 www.independentsdoitbest.com; 888-364-8237

Ironclad Performance Wear Corp............................... 21 www.ironclad.com; 844-200-5664

Phifer ......................................................................... 7 www.phifer.com; 800-841-9473

Dosko ........................................................................... 1 www.dosko.com/hrm; 866-418-0474

Lifetime ..................................................................... BC www.lifetime.com; 801-882-1326

Radia ........................................................................ 17 www.radiaproducts.com; 800-221-1083

Dutton-Lainson Company........................................... 77 www.dutton-lainson.com; 402-462-4141

Lighthouse for the Blind............................................. 46 www.rapidfix.com; 800-542-3697

Ray-O-Vac Corporation............................................. 45 www.rayovac.com; 800-237-7000

ECI Software Solutions ......................................... 70-71 www.ecisolutions.com; 800-588-5128

Lumax......................................................................... 26 www.lumax.com; 844-660-6876

Rust Patrol ............................................................... 28 www.rustpatrol.com; 713-244-8755

Fluidmaster................................................................. 43 www.fluidmaster.com; 800-631-2011

Maxim........................................................................... 1 www.maximmfg.com/hrm; 888-376-0849

S-Line by Ancra International ............................... 29, 75 www.ancracargo.com; 800-626-8353

Franmar ...................................................................... 44 www.franmar.com; 800-538-5069

Metaltech Scaffolding ................................................ 31 www.metaltech.co; 800-363-7587

Simpson Strong-Tie Company Inc.............................. 33 go.strongtie.com; 800-999-5099

Hillman Group............................................................. 44 www.hillmangroup.com; 800-800-4900

Midwest Fastener ................................................. 18-19 www.fastenerconnection.com; 800-444-7313

Stihl Inc......................................................................... 9 www.stihlusa.com; 800-467-8445

House-Hasson Hardware Co. ..................................... 63 www.househasson.com; 800-333-0520

Mi-T-M Corporation .................................................... 45 www.mitm.com; 800-553-9053

Turfco ........................................................................... 1 www.gnedi.com/hrmtr; 866-397-8648

Howard Products Inc.................................................. 16 www.howardproducts.com; 800-266-9545

Mr. Longarm............................................................... 46 www.mrlongarm.com; 800-821-3508

Woodland ................................................................... 27 www.pinecar.com; 573-346-5555

HSI.............................................................................. 30 www.SLD-HSI.com; 800-334-5625

NRHA All-Industry Conference..................................IFC www.NRHAConference.com

Wooster Brush Company ..................................... 11, 65 www.woosterbrush.com; 800-392-7246

*This index is provided for the convenience of our advertisers and readers. The Publisher assumes no liability for errors or omissions.

HARDWARE RETAILING | January 2019

2 Solutions for Negative Reviews Bettencourt says most retailers will face similar negative comments as their businesses develop their social media presence. Here, she offers a few tips to help retailers navigate thorny online interactions diplomatically.

Terrible Experience Bob from ACME Hardware is the WORST!! I can’t believe he still has a job.

Can’t Believe It I just realized the cordless drill ACME sold me needs batteries! WTH?!?

TIE DOWNS WINCH STRAPS FLAGS & BANNERS LOGISTIC STRAPS RECOVERY STRAPS TRAILER HARDWARE

Scathing Reviews Singling Out Employees

Negative Comments Revealing User Error

Bettencourt says in this situation, retailers shouldn’t be tempted to lose their cool and respond immediately. It can be hurtful to hear negative comments about employees, but she recommends retailers take time to write a fair, balanced rebuttal. “Walk away. Get a cup of coffee. Just think about how you’re responding. In these situations, I write a response and read it a couple times until I’m sure it’s exactly what I want to say,” she recommends.

Above all, Bettencourt recommends retailers remain courteous, even if it means biting their tongues. She encourages retailers to treat these situations as if a customer were returning a product directly in store, and handle the situation under those terms. “Offer what you can do, even if that’s connecting a customer directly with a manufacturer. That way, you keep it positive and you’re always giving the customer an option,” she says.

CARGO BARS CHAIN & ACCESSORIES LIFTING SLINGS LOAD BINDERS TARP TIES & BUNGEE CORDS CABLE PULLERS

MAKING CARGO TRANSPORTATION EASIER & MORE SECURE QUALITY BUILT FOR DURABILITY & PERFORMANCE YOU CAN COUNT ON

Contact Ancra Consumer / Industrial Sales Group at 800-626-8353 cicustomerservice@ancra.com consumer.ancracargo.com

January 2019 | HARDWARE RETAILING

Newsmakers

Retail Analyst Emphasizes Omnichannel Focus

n retail, there is a growing demand for businesses to reach shoppers both online and through brick-and-mortar stores. Modern shoppers expect an omnichannel approach, says Joe Derochowski, executive director and home industry analyst for The NPD Group, a company that offers consumer behavior data and analysis. Hardware Retailing spoke to Derochowski to gain insights on the challenges home improvement retailers may face in implementing omnichannel solutions and some practical tips they can use to rise above those challenges. Hardware Retailing (HR): What are your thoughts on the state of the home improvement industry and its online presence? Joe Derochowski (JD): The home improvement industry is in really good shape. However, it is in the early stages of an online presence. In fact, research from The NPD Group has found that just 17 percent of dollars spent online are devoted to home improvement products. However, growth for home improvement sales online is up 33 percent versus a year ago, which proves the industry is poised for growth. There are many opportunities for the industry to continue to excel and grow sales. Baby boomers are focusing on making their homes more accessible, and many millennials are buying their first homes—these are major life moments that will have consumers seeking products and advice from home improvement retailers. Simultaneously, today’s consumer turns to the internet more frequently than they did 10 years ago. Projects begin with a search online. Although many home improvement shoppers still go to the brick-and-mortar store to get items to solve in-the-moment problems, the industry needs to find ways to serve them online. HR: What are some omnichannel challenges retailers may be facing? JD: For the home improvement industry, one of the biggest challenges of meeting the demands of the customer is focused on logistics. The retailer needs to be able to get their customers the items they’re looking for quickly and efficiently. An even bigger challenge retailers are facing is the need for a voice online. The customer is already researching on their phone and computer, so to compete, a retailer needs to tell a compelling story to earn the customer’s business. Retailers should focus on marketing methods that show the company’s personality and tell customers what the business offers. For example, creating online content like a library of how-to YouTube videos can answer questions and get a store on their radar. HR: How can home improvement retailers meet customers’ needs online? JD: Consumer shopping habits are changing, whether we like it or not. We need to find ways to meet the consumer where and when they want to shop— this includes both brick-and-mortar stores and online. The ability to provide assistance is still important, but we need to find new and better ways to provide this assistance, such as one-on-one video consultations or house calls. Retailers should consider investing in ways to make it easier for customers to plan, research, order, deliver and return their purchases. Foster an omnichannel presence to ensure you’re serving all possible customers and staying competitive.

Joe Derochowski is the executive director and home industry analyst for The NPD Group. He follows behavioral trends in a wide variety of categories, developing a unique perspective on what consumers do and why they do it. Derochowski has been helping manufacturers and retailers identify opportunities for growth for the past 30 years.

HARDWARE RETAILING | January 2019

Upcoming Events January 10-12 House-Hasson Spring Market Nashville, Tennessee

11-13 United Hardware Buying Market Minneapolis

13-15 NRF 2019: Retail’s Big Show New York

February 7-9 HDW Inc. Spring Market New Orleans

8-10 Florida Hardware Spring Dealer Market Orlando, Florida

15-17 Monroe Hardware Spring Market Myrtle Beach, South Carolina

19-21 NAHB International Builders’ Show Las Vegas

21-23 Orgill Spring Dealer Market Orlando, Florida

22-24 True Value Spring Reunion Dallas

Fine more events online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.

UNITED STATES True Value and Carter Lumber Announce Partnership True Value and Carter Lumber’s new partnership will enable Carter Lumber to access True Value’s suite of products, support services and industry knowledge. Based in Kent, Ohio, Carter Lumber operates 146 lumber and building materials locations in 12 states. Executives from Carter Lumber say True Value’s focus on independent operations resonated with its leadership team.

Lowe’s Ends Two Smart Home Partnerships Lowe’s has decided to end its separate initiatives with Alacrity Renovation Services and Iris Smart Home, the company announced in its third-quarter financial report. The company described both endeavors as “non-core activities within its U.S. home improvement business,” and said the decision came after its management team had “substantially completed its strategic reassessment of the business and identified actions to drive focus on … improving profitability.” The decision is meant to allow Lowe’s to focus on improving central operations.

Breaking Down Black Friday and Cyber Monday The shopping period after Thanksgiving was busier than ever, according to the National Retail Federation NRF). The organization, which measures trends across all retail sectors, including hardware and home improvement, says nearly 165 million shoppers purchased products in-store or online between Thanksgiving Day, Black Friday and Cyber Monday. NRF’s data reveals more than 89 million people shopped both online and in stores, up 40 percent over 2017.

CANADA RONA to Trim Store Count, Exit Newfoundland

The average Thanksgiving shopper spent about $313 on gifts and other holiday items during the five-day period. Older millennials and Generation X spent the most, averaging $413.

What’s more dependable than D-L¨ products?

Lowe’s Canada intends to close a total of 27 underperforming stores across the country. It will close its regional support center in Mississauga, Ontario, another regional support center in St. John’s, its truss plant and a block plant in Kamloops, British Columbia. RONA’s four corporate stores in Newfoundland and Labrador will be part of the closings.

…Our commitment to helping you increase proﬁts!

D-L Brake Winches

Canac Takes First Step to Expansion Outside Quebec With Ontario Store Hawkesbury, Ontario, will be the site of the first Ontario store for independent retailer Canac, and the chain’s first outside of Quebec. Jean Laberge, president of Canac, has confirmed the land has been purchased, but says development is not likely to begin until late 2019 or 2020.

Ag-Industrial Jacks

For outstanding value and performance, dependable D-L products can’t be beat. We don’t stop here. Dutton-Lainson Company has sales and merchandising programs to increase proﬁts – including competitive pricing, attractive margins, smart packaging and more. Contact us today for your FREE catalog!

For the full story on these briefs, head over to TheRedT.com/0119-news. To read the Canadian briefs, visit hardlines.ca/hardwareretailing. For the latest independent home improvement news, interviews, trends and videos, visit hardwareretailing.com.

Dutton-Lainson Company SINCE 1886

Hastings, NE 68902-0729 402-462-4141 Fax: 402-460-4612 www.dutton-lainson.com Fuel Tank Filters

Dependable Products for Over a Century

January 2019 | HARDWARE RETAILING

Last Word

Ready for Their Close-Ups

he most famous Hollywood might be in California, but the economic impact of the film and TV industry has expanded well beyond the West Coast. According to the Motion Picture Association of America, the film industry supported 2.1 million jobs and generated $139 billion in total wages in 2016. It isn’t just the big studios doing work either. The association says the industry is

comprised of over 93,000 businesses in total, with 87 percent of those businesses employing fewer than 10 people. Many state governments have looked into making their state a fertile ground for movie production. Take a look at how one retailer has made the most of supplying film and stage productions on Page 66. Then see how other states have worked to find the spotlight.

Kentucky • 30% refundable tax credit, minimum investment of $250,000 on films • 35% credit for state resident wages • 10,043 jobs in 2016 • 18 films in 2016-17

Massachusetts • 25% tax credit, minimum investment of $50,000 • 25% payroll tax credit • 33,566 jobs in 2016 • 15 films, 6 TV series in 2017

California

Louisiana

Georgia

• 20% tax credit with $1-75 million budget for feature films • 75% of production days or budget in California required • 715,555 jobs in 2016 • 281 films, 426 TV series in 2017

• 25% base rate redeemable tax credit • 60%-plus rate if filming outside New Orleans • 22,707 jobs in 2016 • 19 films, 14 TV series in 2017

• 20% transferable tax credit, minimum investment of $500,000 • 10% tax credit if state logo used in credits of production • 92,494 jobs in 2016 • 65 films, 83 TV series in 2017

Sources: Motion Picture Association of America, Film Production Capital, National Conference of State Legislatures

HARDWARE RETAILING | January 2019

Young Retailer Year of the

LEARN MORE OR SUBMIT A NOMINATION TODAY AT NRHA.ORG/YROTY